Pratt Company acquired all of Spider, Inc’s outstanding shares on December 31, 2011

Pratt Company acquired all of Spider, Inc’s outstanding shares on December 31, 2011, 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 Sprider’s fair and book value differences as follows:Book ValuesFair ValuesComputer software20,00070,000Equipment40,00030,000Client contracts100,000In-process research and development40,000Notes payable(60,000)(65,000)At December 31, 2011, the following financial information is available for consolidation:(Please refer to the next tab – P02-20 Entry for financial information)Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2011.