| Exercise 5-3 Pace Company purchased 20,000 of the 25,000 shares of Saddler Corporation for $527,800. On January 3, 2014, the acquisition date, Saddler Corporations 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 | | | | | | | | | | SHOW LIST OF ACCOUNTS | | LINK TO TEXT | | Attempts: 0 of 5 used | | SAVE FOR LATER | SUBMIT ANSWER | | | | | |
| | (b) The parts of this question must be completed in order. This part will be available when you complete the part above. | | |
Exercise 5-3 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: Inventory Other current assets Marketable securities Plant and equipment Book Value $50,500 197,800 98,300 294,000 Fair Value $69,200 197,800 123,100 325,200 (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 o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT Attempts: 0 of 5 used SAVE FOR LATER SUBMIT ANSWER (b) The parts of this question must be completed in order. This part will be available when you complete the part above
