Pratt Company acquired all of the outstanding shares of Spider, Inc., on December 31, 2021, for $513,100 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: Fair Computer software Equipment client contracts In-process research and development Notes payable Book Values Values $ 65,500 $120,750 82,500 68, 100 0 129,000 0 30, 250 (90,400) (95,400) At December 31, 2021, the following financial information is available for consolidation (credit balances in parentheses): Pratt Spider Cash $ 13,700 $ 21,400 Receivables 140,500 41,500 Inventory 144,500 79,500 Investment in Spider 513,100 0 Computer software 229,000 65,500 Buildings (net) 569,000 130,000 Equipment (net) 366,000 82,500 Client contracts 0 0 Goodwill 0 0 Total assets $ 1,975,800 $ 420,400 Accounts payable $ (93,300) $ (59,500) Notes payable (525,500) (90,400) Common stock (380,000) (100,000) Additional paid-in (170,000) capital (25,000) Retained earnings (807,000) (145,500) Total liabilities and $(1,975, 800) $(420,400) equities Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2021. Pratt Consolidated PRATT COMPANY AND SUBSIDIARY Worksheet for a Consolidated Balance Sheet December 31, 2021 Spider Debit Credit Cash $ 13,700 $ 21,400 Receivables 140,500 41,500 Inventory 144,500 79,500 Investment in Spider 513,100 Computer software 229,000 65,500 Buildings (net) 569,000 130,000 Equipment (net) 366,000 82,500 Client contracts Research and development asset Goodwill Total assets $ $ 420,400 1,975,800 Accounts payable $ (93,300)| $ (59,500) Notes payable (525,500) (90,400) Common stock (380,000) (100,000) Additional paid-in capital (170,000) (25,000) Retained earnings (807,000) (145,500) Total liabilities and $ $ $ 0 $ equities (1,975,800) (420,400) $ 0 0 $ 01