Pratt Company acquired all of the outstanding shares of Spider, Inc., on December 31, 2021, for $488,900 cash. Pratt will operate Spider as a wholly owned subsidiary with a separate legal and accounting identity. Although many of Spiders 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 Spiders fair and book value differences as follows:

At December 31, 2021, the following financial information is available for consolidation (credit balances in parentheses):

Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2021.

\begin{tabular}{lrr} & Book Values & Fair Values \\ Computer software & $28,000 & $68,750 \\ Equipment & 69,500 & 59,400 \\ Client contracts & 0 & 112,000 \\ In-process research and development & 0 & 24,500 \\ Notes payable & (72,500) & (79,000) \\ \hline \end{tabular}