Pratt Company acquired all of the outstanding shares of Spider, Incorporated, on December 31, 2024, for $510,100 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 Items Equipment Client contracts In-process research and development Notes payable Book Values Fair Values $ 24,000 $ 70,000 52,500 37,200 0 116,000 0 (103,000) 27,000 (109,350) At December 31, 2024, the following financial information is available for consolidation (credit balances in parentheses): Items Pratt Spider Cash $ 11,350 $ 36,000 Receivables 154,500 Inventory Investment in Spider 167,500 56,000 107,500 510,100 0 Computer software Buildings (net) 215,500 24,000 577,750 138,000 Equipment (net) Client contracts Goodwill Total assets Accounts payable Notes payable Common stock 316,000 52,500 0 0 0 0 $ 1,952,700 $ 414,000 $ (94,200) (532,500) (380,000) $ (26,000) Additional paid-in capital (170,000) Retained earnings (776,000) Total liabilities and equities $ (1,952,700) (103,000) (100,000) (25,000) (160,000) $ (414,000) Required: Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2024. > Answer is complete but not entirely correct. PRATT COMPANY AND SUBSIDIARY Consolidated Balance Sheet Cash Receivables Inventory Investment in Spider Computer software Buildings (net) December 31, 2024 Assets Liabilities and Owners' Equity $ 47,558 Accounts payable $ 120,200 211,000 Notes payable 460,500 275,080 Common stock 505,000 Additional paid-in capital 201,000 253,100 Retained earnings 936,000 715,750 116,000 432,000 27,000 561,200 $ 2,638,688 Total liabilities and equities 2,222,700 Equipment (net) Client contracts Research and development asset Goodwill Total assets