Exercise 5-3 Allocation of Cost Pace Company purchased 2,r of the 25,000 shares of Saddler Corporation for $525,. [in January 3, 20:14, the acquisiu'on date, Saddler Corporation's capital stock and retained earnings account balances were $5, and $l,, respectively. The following values were determined for Saddler Corporation on the date of purchase: Book 1iti'alue Fair Value Inventory $ 50,000 $ ?, |[Either current assets 2, EDD, Marketahle securities l 125, Plant and equipment 3,l}| 330, Required: A. Prepare the entry on the books of Pace Company to record its investment in Saddler Corporation. B. Prepare a Computation andAllocation Schedule for the difference between the cost and hook value in the consolidated statements workpaper