Implied and Book Value Chapter 5 Allocation and Depreciation of Differences Between Impl ration for $525,000.0 ained earnings EXERCISE 5-3 he date of purchase: Allocation of Cost LO 2 Pace Company purchased 20,000 of the 25,000 shares of Saddler Corporation January 3, 2019, the acquisition date, Saddler Corporation's capital stock ar account balances were $500,000 and $100,000, respectively. The following values were determined for Sada alues were determined for Saddler Corporation on the date of pure Book Value $ 50,000 200,000 100,000 300,000 Fair Value $ 70,000 200,000 125,000 330,000 Inventory Other current assets Marketable securities Plant and equipment Required: A. Prepare the entry on the books of Pace Company to record its investment in Sed 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 statements workpaper