Pratt Company acquired all of Spider, Inc.’s outstanding shares on December 31, 2018, for $507,950 c

Pratt Company acquired all of Spider, Inc.’s outstanding shares on December 31, 2018, for $507,950 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 Fair Values Computer software $ 29,000 $ 78,600 Equipment 55,800 40,700 Client contracts 0 114,000 In-process research and development 0 30,500 Notes payable (72,900 ) (81,950 )

At December 31, 2018, the following financial information is available for consolidation: Pratt Spider Cash $ 8,950 $ 18,400 Receivables 103,500 87,000 Inventory 152,500 86,000 Investment in Spider 507,950 0 Computer software 227,000 29,000 Buildings (net) 604,750 130,500 Equipment (net) 358,000 55,800 Client contracts 0 0 Goodwill 0 0 Total assets $ 1,962,650 $ 406,700 Accounts payable $ (90,400 ) $ (44,000 ) Notes payable (514,250 ) (72,900 ) Common stock (380,000 ) (100,000 ) Additional paid-in capital (170,000 ) (25,000 ) Retained earnings (808,000 ) (164,800 ) Total liabilities and equities $ (1,962,650 ) $ (406,700 )

Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2018.

Below is what I have so far, please complete the answer. Please finish the problem and correct the mistake.

Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2018 X Answer is complete but not entirely correct. Assets Cash Receivables Inventory Research and development asset Computer software Buildings (net) Equipment (net) Client contracts Goodwill PRATT COMPANY AND SUBSIDIARY Consolidated Balance Sheet December 31, 2018 Liabilities and Stockholders' Equity $ 27,350 Accounts payable $ (134,400) 190,500 Notes payable (596,200) 238,500 Common stock (380,000) 30,500 Additional paid-in capital (170,000) 305,600 Retained earnings (972,800) ► 735,250 398,700 114,000 213,000 Total assets $ 2,253,400 Total liabilities and equities (2,253,400)

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