Pratt Company acquired all of the outstanding shares of Spider, Inc., on December 31, 2021, for $451,400 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 $ 58,500 $ 89,000 45,500 30,700 0 107,000 8 (93,000) 24,750 (102,800) 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 $ 17,800 $ 130,500 18,500 73,500 143,000 97,500 451,400 240,000 58,500 598,750 131,000 349,000 45,500 $ 1,930,450 $ 424,500 $ (89,200) $ (51,000) (531,250) (380,000) (170,000) (760,000) $(1,930,450) (93,000) (100,000) (25,000) (155,500) $ (424,500)