Pratt Company acquired all of Spider, Inc.’s outstanding shareson December 31, 2018, for $478,050 cash. Pratt will operate Spideras a wholly owned subsidiary with a separate legal and accountingidentity. Although many of Spider’s book values approximate fairvalues, several of its accounts have fair values that differ frombook values. In addition, Spider has internally developed assetsthat remain unrecorded on its books. In deriving the acquisitionprice, Pratt assessed Spider’s fair and book value differences asfollows: Book Values Fair Values Computer software $ 49,500 $88,500 Equipment 55,500 36,400 Client contracts 0 105,000In-process research and development 0 29,750 Notes payable (104,000) (112,850 ) At December 31, 2018, the following financialinformation is available for consolidation: Pratt Spider Cash $15,500 $ 19,200 Receivables 117,000 57,900 Inventory 165,000103,900 Investment in Spider 478,050 0 Computer software 250,00049,500 Buildings (net) 600,500 172,500 Equipment (net) 319,00055,500 Client contracts 0 0 Goodwill 0 0 Total assets $ 1,945,050 $458,500 Accounts payable $ (96,300 ) $ (65,500 ) Notes payable(530,750 ) (104,000 ) Common stock (380,000 ) (100,000 ) Additionalpaid-in capital (170,000 ) (25,000 ) Retained earnings (768,000 )(164,000 ) Total liabilities and equities $ (1,945,050 ) $ (458,500) Prepare a consolidated balance sheet for Pratt and Spider as ofDecember 31, 2018.