Pratt Company acquired all of the outstanding shares of Spider, Inc. on December 31, 2021, for $518,250 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 $ 50,000 $9,000 46,000 28,100 0 116,800 31,000 (92,200) (97,600) At December 31, 2021, the following financial information is available for consolidation (credit balances in parentheses) ces 5 $ Pratt 6,050 114,500 129.000 510.250 252,000 556,000 354,000 Spider 29,700 79,500 93.000 50,000 135,500 44,000 Cash Receivables Inventory Investment in Spider Computer software buildings (net) Equipment (net) Client contracts Goode Total assets Accounts payable Notes payable Common stock Additional paid in capital Retained earnings Total liabilities and equities 0 $ 1.910.600 $430,00 $ (92,100) (33.000 (510,500) (92,200 (350,000) (100,000 (170.000) (25,600 225.000 (179.500 5(1,930,600) 5 (429.2003 Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2021 Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2021. Credit PRATT COMPANY AND SUBSIDIARY Worksheet for a Consolidated Balance Sheet December 31, 2021 Pratt Spider Debit 6,850 $ 29.700 114,500 79,500 129,000 93,000 518,250 252,000 50,000 556,000 133,500 354,000 44,000 Consolidated 36,550 194,000 222,000 Cash Receivables Inventory Investment in Spider Computer software Buildings (net) Equipment (net) Client contracts Research and development asset Goodwill Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings Total liabilities and equities 452,550 $ 1,930,600 $ 429,700 $ (92,100) 5 (33,000) (510,500) (92 200) (380,000) (100,000) (170,000) (25.000) (778,000) (179,500) S (1.930,600) S (429,700) S 0 $ $ 0