Pratt Company acquired all of the outstanding shares of Spider, Inc., on December 31, 2021, for $531,550 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 $ 57,700 $ 116,950 40,500 25,500 109,000 0 39,000 (95,500) (105,200) 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 Pratt 15,000 122,000 160,000 531,550 217,000 611, 250 321,000 Spider 38,300 63,500 116,000 0 57,700 146,000 40,500 Total assets Accounts payable $ 1,977,800 $ (92,300) $ 462,000 $ (57,500) ;" rocar assels Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings Total liabilities and equities T9' 02700" $ (92,300) $ (57,500) (523,500) (95,500) (380,000) (100,000) (170,000) (25,000) (812,000) (184,000) $(1,977,800) $ (462,000) 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 PRATT COMPANY AND SUBSIDIARY Worksheet for a Consolidated Balance Sheet December 31, 2021 Pratt Spider Debit $ 15,000 $ 38,300 122,000 63,500 160,000 116,000 531,550 217,000 57,700 611,250 146,000 321,000 40,500 Credit Consolidated Worksheet for a Consolidated Balance Sheet December 31, 2021 Pratt Spider Debit $ 15,000 $ 38,300 122,000 63,500 160,000 116,000 531,550 217,000 57,700 611,250 146,000 321,000 40,500 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 $ 1,977,800 $ $ (92,300) $ (523,500) (380,000) (170,000) (812,000) $ (1,977,800) $ 462,000 (57,500) (95,500) (100,000) (25,000) (184,000) (462,000)