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 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:

	Book Values			Fair Values
Computer software	$	50,000		$	93,000
Equipment		44,000			28,100
Client contracts		0			116,800
In-process research and development		0			31,000
Notes payable		(92,200	)		(97,600	)

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

	Pratt				Spider
Cash	$	6,850			$	29,700
Receivables		114,500				79,500
Inventory		129,000				93,000
Investment in Spider		518,250				0
Computer software		252,000				50,000
Buildings (net)		556,000				133,500
Equipment (net)		354,000				44,000
Client contracts		0				0
Goodwill		0				0
Total assets	$	1,930,600			$	429,700
Accounts payable	$	(92,100	)		$	(33,000	)
Notes payable		(510,500	)			(92,200	)
Common stock		(380,000	)			(100,000	)
Additional paid-in capital		(170,000	)			(25,000	)
Retained earnings		(778,000	)			(179,500	)
Total liabilities and equities	$	(1,930,600	)		$	(429,700	)

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

PRATT COMPANY AND SUBSIDIARY
Worksheet for a Consolidated Balance Sheet
December 31, 2021
	Pratt	Spider	Debit	Credit	Consolidated
Cash	$6,850	$29,700			$36,550
Receivables	114,500	79,500			194,000
Inventory	129,000	93,000			222,000
Investment in Spider	518,250
Computer software	252,000	50,000
Buildings (net)	556,000	133,500
Equipment (net)	354,000	44,000
Client contracts
Research and development asset
Goodwill
Total assets	$1,930,600	$429,700			$452,550
Accounts payable	$(92,100)	$(33,000)
Notes payable	(510,500)	(92,200)
Common stock	(380,000)	(100,000)
Additional paid-in capital	(170,000)	(25,000)
Retained earnings	(778,000)	(179,500)
Total liabilities and equities	$(1,930,600)	$(429,700)	$0	$0	$0