Pratt Company acquired all of the outstanding shares of Spider, Inc., on December 31, 2021, for $539,650 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 $ 46,000 $ 106,500 79,500 60,000 0 124,000 28,750 (66,000) (71,850) 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 $ 15,850 $ 12,500 160,500 59,500 145,000 84,500 539,650 0 251,500 46,000 513,750 149,000 323,000 79,500 0 0 0 $ 1,949, 250 $ 431,000 $ (91,500) $ (59,000) (524,750) (66,000) (380,000) (100,000) (170,000) (25,000) (783,000) (181,000) $(1,949, 250) $ (431,000) Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2021. Credit Consolidated PRATT COMPANY AND SUBSIDIARY Worksheet for a Consolidated Balance Sheet December 31, 2021 Pratt Spider Debit $ 15,850 $ 12,500 160,500 59,500 145,000 84,500 539.650 Cash Receivables Inventory Investment in Spider