Pratt Company acquired all of the outstanding shares of Spider, Inc., on December 31, 2021, for $484,900 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 $ 46,600 $ 94,350 78,500 0 0 (71,900) 67,900 112,500 29,000 (78,900) At December 31, 2021, the following financial information is available for consolidation (credit balances in parentheses): Spider Pratt Inventory Cash Receivables Investment in Spider $ 32,400 $ 6,800 120,500 32,000 171,500 54,000 484,900 0 Computer software 230,500 46,600 Notes payable Common stock Buildings (net) Equipment (net) Client contracts Goodwill Total assets Accounts payable Additional paid-in capital 595,000 171,500 315,000 78,500 0 0 0 0 $ 1,949,800 $ 389,400 $ (95,300) $ (41,000) (531,500) (71,900) (380,000) (170,000) Retained earnings (773,000) Total liabilities and equities $ (1,949,800) (100,000) (25,000) (151,500) $ (389,400) 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 Credit Consolidated Cash Receivables Inventory 32,400 $ 6,800 120,500 32,000 171,500 54,000 Investment in Spider 484,900 Computer software 230,500 46,600 Buildings (net) 595,000 171,500 315,000 78,500 Equipment (net) Client contracts Research and development asset Goodwill Total assets Accounts payable Notes payable $ 1,949,800 $ 389,400 $ 0 $ (95,300) $ (41,000) (531,500) (71,900) Common stock (380,000) (100,000) Additional paid-in capital (170,000) (25,000) Retained earnings (773,000) (151,500) Total liabilities and equities $ (1,949,800) $ (389,400) $ 0 $ 0