Pace Company purchased 20,000 of the 25,000 shares of Saddler Corporation for $527,800. On January 3, 2014, the acquisition date, Saddler Corporation’s capital stock and retained earnings account balances were $493,300 and $99,300, respectively.

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

		Book Value		Fair Value
Inventory		$50,500		$69,200
Other current assets		197,800		197,800
Marketable securities		98,300		123,100
Plant and equipment		294,000		325,200

(a) Prepare the entry on the books of Pace Company to record its investment in Saddler Corporation. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit

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Answer rating: 100% (QA)

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