Pace Company purchased 20,000 of the 25,000 shares of Saddler

Pace Company purchased 20,000 of the 25,000 shares of Saddler Corporation for $525,000. On January 3, 2011, the acquisition date, Saddler Corporation’s capital stock and retained earnings account balances were $500,000 and $100,000, respectively.

The following values were determined for Saddler Corporation on the date of purchase:


Pace Company purchased 20,000 of the 25,000 shares of Saddler



Required:
A. Prepare the entry on the books of Pace Company to record its investment in Saddler Corporation.
B.
Prepare a Computation and Allocation Schedule for the difference between book value and the value implied by the purchase price in the consolidated statementsworkpaper.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...

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