Pratt Company acquired all of the outstanding shares of Spider, Inc., on December 31, 2021, for $528,850 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 $ 45,800 Fair Values $ 102,800 60,500 0 43,900 110,000 0 (92,000) 26,500 (101,300) At December 31, 2021, the following financial information is available for consolidation (credit balances in parentheses): Pratt Spider Cash $ 5,650 $ 21,700 Receivables 146,000 86,500 Inventory Investment in Spider 175,500 127,000 528,850 Computer software 250,500 45,800 Buildings (net) 500,000 132,000 Equipment (net) 332,000 60,500 Notes payable Common stock Client contracts Goodwill Total assets Accounts payable Additional paid-in capital 0 0 0 $ 1,938,500 $ $ 473,500 (97,500) $ (68,000) (525,000) (380,000) (170,000) Retained earnings (766,000) (92,000) (100,000) (25,000) (188,500) Total liabilities and equities $ (1,938,500) $ (473,500) 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 $ 5,650 $ 21,700