Question

omework Check my w Company acquired all of Spider, Inc.'s outstanding shares on December 31, 2018, for $484,450 cash Pratt will operate Spidera wholly owned subsidiary with a separate legal and accounting identity. Although many of Spiders several of its accounts have fair values that differ from book values. In addition, Spider has unrecorded book values approximate fair values 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 Equipment Client contracts In-process research and development Notes payable s 24,500 78,500 49,800 129,500 21,500 76,000)(82,600) 65,500 At December 31, 2018, the following financial information is available for consolidation: Prat Cash Receivables Inventory Investment in Spider Computer software Buildings (net) Equipment (net) Client contracts 10,75014,500 116,500 142,500 484,450 213,500 50,500 86, 500 020131,500 383,000 65,500 Goodwi11 Total assets 1,958,950 373,000 Accounts payable Notes payable Common stock Additional paid-in capital Retained earninge (91.200) (31,500) (521,750) ,000) (380,000) (100,000) (170,000) (25,000) 1796,000) 140-500) (1.958,950)(373,000) Total 11abilities and equities <Prev 2 of 10 Next

Answer 1