Problem 2-30 (Algo) (LO 2-4, 2-5, 2-7, 2-8) Pratt Company acquired all of the outstanding shares of Spider, Inc., on December 31, 2021, for $504,450 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 $ 57,000 $ 97,250 Equipment 55,000 37,200 Client contracts 0 107,500 In-process research and development 0 29,500 Notes payable (78,000 ) (84,000 ) At December 31, 2021, the following financial information is available for consolidation (credit balances in parentheses): Pratt Spider Cash $ 31,700 $ 32,400 Receivables 147,500 74,500 Inventory 146,000 81,000 Investment in Spider 504,450 0 Computer software 226,500 57,000 Buildings (net) 569,250 146,500 Equipment (net) 311,000 55,000 Client contracts 0 0 Goodwill 0 0 Total assets $ 1,936,400 $ 446,400 Accounts payable $ (94,900 ) $ (73,400 ) Notes payable (524,500 ) (78,000 ) Common stock (380,000 ) (100,000 ) Additional paid-in capital (170,000 ) (25,000 ) Retained earnings (767,000 ) (170,000 ) Total liabilities and equities $ (1,936,400 ) $ (446,400 ) Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2021.

Problem 2-30 (Algo) (LO 2-4, 2-5, 2-7, 2-8) Pratt Company acquired all of the outstanding shares of Spider, Inc., on December 31, 2021, for $504,450 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 Equipment Client contracts In-process research and development Notes payable Book Values Fair Values $ 57,000 $ 97,250 55,000 37,200 0 107,500 29,500 (78,000) (84,000) 0 At December 31, 2021, the following financial information is available for consolidation (credit balances in parentheses): 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 Pratt Spider $ 31,700 $ 32,400 147,500 74,500 146,000 81,000 504,450 0 226,500 57,000 569,250 146,500 311,000 55,000 0 0 0 $ 1,936,400 $ 446,400 $ (94,900) $ (73,400) (524,500) (78,000) (380,000) (100,000) (170,000) (25,000) (767,000) (170,000) $(1,936,400) $ (446,400) o Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2021