Exercise 5-3 Pace Company purchased 20,000 of the 25,000 shares of Saddler Corporation for $509,900. On January 3, 2014, the acquisition date, Saddler Corporation's capital stock and retained earnings account balances were $490,600 and $100,600, respectively. The following values were determined for Saddler Corporation on the date of purchase: Book Value Fair Value Inventory $50,600 $69,800 Other current assets 197,200 197,200 Marketable securities Plant and equipment 98,100 304,100 122,900 324,700 (a) Your answer is correct. 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 Investment in Subsidiary Debit 509,900 Credit Cash 509,900