Pratt Company acquired all of the outstanding shares of Spider, Inc., on December 31, 2021, for $515,300 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 $ 40,000 $ 76,000 86,000 71,100 @ 112,400 @ 34,750 (95,000) (103,450) 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 $ 31,950 $ 17,100 141,000 62,900 183,500 106,000 515,300 213,000 40,000 513,000 134,000 328,000 86,000 @ 0 0 0 $ 1,925,750 $ 446,000 $ (98,500) $ (43,500) (519,250) (95,000) (380,000) (100,000) (170,000) (25,000) (758,000) (182,500) $(1,925,750) $ (446,000) Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2021. Credit Consolidated PRATT COMPANY AND SUBSIDIARY Worksheet for a Consolidated Balance Sheet December 31, 2021 Pratt Spider Debit $ 31,950 $ 17,100 141,000 62.900 183,500 106,000 515,300 213,000 40,000 513,000 134,000 328,000 86,000 Cash Receivables Inventory Investment in Spider Computer software Buildings (net) Equipment (net) Client contracts Research and development asset Goodwill Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings Total liabilities and equities $ 0 $ 1,925,750 $ $ (98,500) $ (519,250) (380,000) (170,000) (758,000) $ (1,925,750) $ 446,000 (43,500) (95,000) (100,000) (25,000) (182,500) (446,000) $ 0 $ 0 5 0