Pratt Company acquired all of the outstanding shares of Spider, Inc., on December 31, 2021, for $503,750 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 $ 49,800 $ 112,550 63,500 44,700 116,200 0 21,000 (69,000) (78,400) 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 $ 16,100 $ 13,900 163,500 40,500 164,000 100,500 503,750 0 259,000 49,800 506,500 149,800 398,000 63,500 0 0 0 0 $ 2,010,850 $ 418,000 $ (90,600) $ (53,000) (521,250) (69,000) (380,000) (100,000) (170,000) (25,000) (849,000) (171,000) $(2,010,850) $ (418,000) Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2021. Credit Consolidated Cash Receivables Inventory Investment in Spider Computer software Buildings (net) Equipment (net) Client contracts Research and development asset Goodwill PRATT COMPANY AND SUBSIDIARY Worksheet for a Consolidated Balance Sheet December 31, 2021 Pratt Spider Debit $ 16,100 $ 13,900 163,500 40,500 164.000 100,500 503,750 259.000 49,800 506,500 149,800 398,000 63,500 418,000 $ 0 Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings Total liabilities and equities $ 2,010,850 S $ (90,600) $ (521,250) (380,000) (170,000) (849,000) $ (2,010,850) S (53,000) (69,000) (100,000) (25,000) (171,000) (418,000) $ 0 S 0 $ 0