Pace Company purchased 20,000 of the 25,000 shares of Saddler Corporation for $525,000. On January 3, 2014, the acquisition date, Saddler Corporation's capital stock and retained earnings account balances were $500,000 and $100,000, respectively.

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

Book ValueFair ValueInventory

$50,000$70,000Other current assets

200,000200,000Marketable securities

100,000125,000Plant and equipment

300,000330,000

Prepare the entry on the books of Pace Company to record its investment in Saddler Corporation