Pratt Company acquired all of the outstanding shares of Spider, Inc., on December 31, 2021, for $504,450 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 $ 57,000 $ 97,250 55,000 37,200 107,500 0 29,500 (78,000) (84,000) At December 31, 2021, the following financial information is available for consolidation (credit balances in parentheses): $ $ Spider 32,400 74,500 81,000 Pratt 31,700 147,500 146,000 504,450 226,500 569, 250 311,000 57,000 146,500 55,000 0 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 $ 1,936,400 $ 446,400 $ (94,900 $ (73,400) (524,500) (78,000) (380,000) (100,000) (170,000) (25,000) (767,000) (170,000) $(1,936,400) $ (446,400) Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2021. Credit Consolidated Cash Receivables PRATT COMPANY AND SUBSIDIARY Worksheet for a Consolidated Balance Sheet December 31, 2021 Pratt Spider Debit $ 31,700 $ 32,400 147,500 74,500 146,000 81,000 504,450 226,500 57,000 569,250 146,500 311,000 55,000 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 $ $ 0 $ $ 1,936,400 $ (94,900) (524,500) (380,000) (170,000) (767,000) $ (1,936,400) 446,400 (73,400) (78,000) (100,000) (25,000) (170,000) (446,400) $ $ 0 $ 0 $ 0