Pratt Company acquired all of the outstanding shares of Spider, Incorporated, on December for $ 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:
At December the following financial information is available for consolidation credit balances in parentheses:
Required:
Prepare a consolidated balance sheet for Pratt and Spider as of December
When doing the consolidated balance sheet, you need to include a research and development account.
