Pratt Company acquired all of Spider, Inc.'s outstanding shares on December 31, 2013, 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 _______Fair Values

Computer software . . . . . . . . . . . . . . . . . . . . . . $ 20,000 ....................$ 70,000

Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000 ......................30,000

Client contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . -0- ......................100,000

In-process research and development . . . . . . . . . . .-0- ...................... 40,000

Notes payable . . . . . . . . . . . . . . . . . . . . . . . . . . (60,000) ................... (65,000)

At December 31, 2013, the following financial information is available for consolidation:

Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2013.

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Pratt Spider Cash Receivables Inventory Investment in Spider Computer software. Buildings (net) Equipment (net) Client contracts. Goodwill $36,000 18,000 52,000 90,000 116,000 140,000 495,000 210,000 595,000 308,000 20,000 130 40,000 Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings $ (88,000) (25,000) (60,000) (380,000 (100,000) 170,000) (25,000) (752,000) (140,00o) $(1,900,000) $350,000) (510,000) Total liabilities and equities