question: List the journal entries (if any) that Pratt records regarding the investment in Spider.

P 2-29 in textbook. Pratt Company acquired all of Spider, Inc.'s outstanding shares on December 31, 2018, for $495,000 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 $ 20,000 40,000 0- Computer software Equipment Client contracts In-process research and development Notes payable Fair Values $ 70,000 30,000 100,000 40,000 (60,000) (65,000) At December 31, 2018, the following financial information is available for consolidation: Cash Receivables Inventory Investment in Spider Computer software Buildings (net) Equipment (net) Client contracts In-Process R&D Goodwill Total Assets Accounts payable Notes payable Common Stock Additional paid-in capital Retained earnings Total liabilities and equities Pratt $36,000 116,000 140,000 495,000 210,000 595,000 308,000 -0 -0- 0- 1,900,000 (88,000) (510,000 (380,000) (170,000 (752,000 (1,900,000) Spider $18,000 52,000 90,000 -0 20,000 130,000 40,000 -0- -0- -0- 350,000 (25,000) (60,000) (100,000) (25,000) (140,000) (350,000) PRATT COMPANY AND CONSOLIDATED SUBSIDIARY Consolidation Worksheet For Year Ending December 31, 2018 Consolidated Totals Pratt Spider Consolidation Entries Accounts Cash Receivables Inventory Investment in Spider 36,000 116,000 140,000 495,000 18,000 52,000 90,000 210,000 595,000 308,000 20,000 130,000 40,000 Computer software Buildings (net) Equipment (net) Client contracts Research and development asset Goodwill Total assets 1.900.000 350.000 Accounts payable Notes payable Common stock Additional paid in capital Retained earnings, 12/31/18 Total liabilities and equity (88,000) (25,000) (510,000) (60,000) (380,000) (100,000) (170,000) (25,000) (752,000) (140,000) (1,900,000)| (350,000)