On January $1,2023,$ Palka, Incorporated, acquired $70$ percent of the outstanding shares of Sellinger Company for $$1,818,600$ in cash. The price paid was proportionate to Sellinger$$s total fair value, although at the acquisition date, Sellinger had a total book value of $$2,330,000.$ All assets acquired and liabilities assumed had fair values equal to book values except for a patent $($six$-$year remaining life$)$ that was undervalued on Sellinger$$s accounting records by $$258,000.$ On January $1,2024,$ Palka acquired an additional $25$ percent common stock equity interest in Sellinger Company for $$710,625$ in cash. On its internal records, Palka uses the equity method to account for its shares of Sellinger. Un January $1,2023,$ Palka, Incorporated, acquired $\frac{?}{0}$ percent of the outstanding shares of Sellinger Company tor $$1,818,600$ in cash.

The price paid was proportionate to Sellinger's total fair value, although at the acquisition date, Sellinger had a total book value of

$$2,330,000.$ All assets acquired and liabilities assumed had fair values equal to book values except for a patent $($six$-$year remaining

life$)$ that was undervalued on Sellinger's accounting records by $$258,000.$ On January $1,2024,$ Palka acquired an additional $25$

percent common stock equity interest in Sellinger Company for $$710,625$ in cash. On its internal records, Palka uses the equity method

to account for its shares of Sellinger.

During the two years following the acquisition, Sellinger reported the following net income and dividends:

Required:

a$.$ Show Palka's journal entry to record its January $1,2024,$ acquisition of an additional $25$ percent ownership of Sellinger Company

shares.

b$.$ Prepare a schedule showing Palka's December $31,2024,$ equity method balance for its Investment in Sellinger account.

Answer is not complete.

Complete this question by entering your answers in the tabs below.

Required A

Show Palka's journal entry to record its January $1,2024,$ acquisition of an additional $25$ percent ownership of Sellinger

Company shares.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

During the two years following the acquisitUn January $1,2023,$ Palka, Incorporated, acquired $\frac{?}{0}$ percent of the outstanding shares of Sellinger Company tor $$1,818,600$ in cash.

The price paid was proportionate to Sellinger's total fair value, although at the acquisition date, Sellinger had a total book value of

$$2,330,000.$ All assets acquired and liabilities assumed had fair values equal to book values except for a patent $($six$-$year remaining

life$)$ that was undervalued on Sellinger's accounting records by $$258,000.$ On January $1,2024,$ Palka acquired an additional $25$

percent common stock equity interest in Sellinger Company for $$710,625$ in cash. On its internal records, Palka uses the equity method

to account for its shares of Sellinger.

During the two years following the acquisition, Sellinger reported the following net income and dividends:

Required:

a$.$ Show Palka's journal entry to record its January $1,2024,$ acquisition of an additional $25$ percent ownership of Sellinger Company

shares.

b$.$ Prepare a schedule showing Palka's December $31,2024,$ equity method balance for its Investment in Sellinger account.

Answer is not complete.

Complete this question by entering your answers in the tabs below.

Required B

Prepare a schedule showing Palka's December $31,2024,$ equity method balance for its Investment in Sellinger account.

Note: Amounts to be deducted should be indicated with a minus sign.