Pratt Company acquired all of the outstanding shares of Spider, Inc., on December 31, 2021, for $550,200 cash. Pratt will operate Spider as a wholly owned subsidiary with a separate legal and accounting identity. Although many of Spider's book values approximate fair values, several of its accounts have fair values that differ from book values. In addition, Spider has internally developed assets that remain unrecorded on its books. In deriving the acquisition price, Pratt assessed Spider's fair and book value differences as follows: Computer software Equipment client contracts In-process research and development Notes payable Book Values Fair Values $ 26,000 $ 90,500 60,000 43,300 0 139,000 0 26,000 (103,500) (113,100) At December 31, 2021, the following financial information is available for consolidation (credit balances in parentheses): Cash Receivables Inventory Investment in Spider Computer software Buildings (net) Equipment (net) client contracts Goodwill Pratt Spider $ 9,400 $ 43,000 113,500 89,000 144,000 100,000 550,200 0 242,500 26,000 601,250 150,500 279,000 60,000 0 0 0 0 $ 1,939,850 $ 468,500 $ (95,100) $ (55,000) (519,750) (103,500) (380,000) (100,000) (170,000) (25,000) (775,000). (185,000) $(1,939,850) $ (468,500) Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings Total liabilities and equities Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2021. Credit Consolidated Cash $ 52,400 Receivables PRATT COMPANY AND SUBSIDIARY Worksheet for a Consolidated Balance Sheet December 31, 2021 Pratt Spider Debit $ 9,400 $ 43,000 113,500 89,000 144,000 100,000 550,200 242,500 26,000 601,250 150,500 279,000 60,000 202,500 244,000 550,200 0 Inventory Investment in Spider Computer software Buildings (net) Equipment (net) Client contracts Research and development asset Goodwill Total assets $ 1,939,850 $ $ 498,900 468,500 (55,000) $ $ Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings (95,100) (519,750) (380,000) (170,000) (775,000) (103,500) (100,000) (25,000) (185,000)