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 Spiders 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 Spiders fair and book value differences as follows:

	Book Values			Fair Values
Computer software	$	45,800		$	102,800
Equipment		60,500			43,900
Client contracts		0			110,000
In-process research and development		0			26,500
Notes payable		(92,000	)		(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		175,500				127,000
Investment in Spider		528,850				0
Computer software		250,500				45,800
Buildings (net)		500,000				132,000
Equipment (net)		332,000				60,500
Client contracts		0				0
Goodwill		0				0
Total assets	$	1,938,500			$	473,500
Accounts payable	$	(97,500	)		$	(68,000	)
Notes payable		(525,000	)			(92,000	)
Common stock		(380,000	)			(100,000	)
Additional paid-in capital		(170,000	)			(25,000	)
Retained earnings		(766,000	)			(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.

Answer is not complete. Credit Consolidated PRATT COMPANY AND SUBSIDIARY Worksheet for a Consolidated Balance Sheet December 31, 2021 Pratt Spider Debit $ 5,650 $ 21,700 146,000 86,500 175,500 127,000 528,850 Cash $ 27,350 232,500 302,500 528,850 0 57,000 Receivables Inventory Investment in Spider Computer software Buildings (net) Equipment (net) Client contracts Research and development asset Goodwill 250,500 500,000 45,800 132,000 60,500 353,300 632,000 332,000 16,600 375,900 110,000 110,000 26,500 26,500 Total assets $ $ 2,060,050 $ $ 165,500 626,300 9,300 Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings $ 1,938,500 $ (97,500) (525,000) (380,000) (170,000) (766,000) 473,500 (68,000) (92,000) (100,000) (25,000) (188,500) 100,000 380,000 25,000 170,000 188,500 766,000 Total liabilities and equities $ (473,500) 507,000 $ 554,750 $ 2,107,800 (1,938,500)