Problem 2-29 (LO 2-4, 2-5, 2-7, 2-8) Pratt Company acquired all of Spider, Inc.'s outstanding shares on December 31, 2018, for $478,050 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 $ 49,500 55,500 Computer software Equipment client contracts In-process research and development Notes payable Fair Values $ 88,500 36,400 105,000 29,750 (112,850) (104,000) At December 31, 2018, the following financial information is available for consolidation: $ $ Spider 19,200 57,900 103,900 Pratt 15,500 117,000 165,000 478,050 250,000 600,500 319,000 49,500 172,500 55,500 Cash Receivables Inventory Investment in Spider Computer software Buildings (net) Equipment (net) client contracts Goodwill Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings Total liabilities and equities $ 1,945,050 $ (96,300) (530,750) (380,000) (170,000) (768,000) $(1,945,050) $ 458,500 $ (65,500) (194,000) (100,000) (25,000) (164,000) $ (458,500) Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2018