Pratt Company acquired all of the outstanding shares of Spider, Inc., on December 31, 2021, for $507,950 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 $ 29,000 $ 78,600 55,800 40,700 0 114,000 30,500 (72,900) (81,950) 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 Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings Total liabilities and equities Pratt Spider $ 8,950 $ 18,400 103,500 87,000 152,500 86,000 507,950 0 227,000 29,000 604,750 130,500 358,000 55,800 0 0 0 0 $ 1,962,650 $ 406,700 $ (90,400) $ (44,000) (514,250) (72,900) (380,000) (100,000) (170,000) (25, 000) (808,000) (164,800) $(1,962,650) $ (406,700) Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2021. PRATT COMPANY AND SUBSIDIARY Worksheet for a Consolidated Balance Sheet December 31, 2021 Pratt Spider Debit $ 8,950 $ 18,400 103,500 87,000 152,500 86,000 Credit Consolidated Cash Receivables 507,950 Inventory Investment in Spider Computer software Buildings (net) Equipment (net) 227,000 604,750 358,000 29,000 130,500 55,800 Client contracts Research and development asset Goodwill Total assets $ 0 Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings Total liabilities and equities $ 1,962,650 $ $ (90,400) $ (514,250) (380,000) (170,000) (808,000) $ (1,962,650) $ 406,700 (44,000) (72,900) (100,000) (25,000) (164,800) (406,700) $ 0 $ 0 $ 0