prepare a consolidated balance sheet for Patt and Spider as December 31, 2018.

Pratt Company acquired all of Spider, Inc.'s outstanding shares on December 31, 2018, for $488,900 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 Book Values FairValues Computer software Equipment Client contracts In-process research and development Notes payable $ 68,750 $ 28,000 69,500 59,400 112,000 24,500 (79,000) (72,500) At December 31, 2018, the following financial information is available for consolidation Pratt Spider 18,700 16,000 57,500 87,000 Cash Receivables Inventory Investment in Spider Computer software Buildings (net) Equipment (net) Client contracts Goodwi11 118,500 158,000 488,900 230,000 612,750 400,000 28,000 136,000 69,500 Total assets $2,026,850 394,000 Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings $(94,600) $ (34,000) (72,500) (380,000) (100,000) (25,000) (532,250) (170,000) (850,000 (162,500 Total liabilities and equities $ (2,026,850) (394,000)