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.

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

Items $20232024$

Net income $ $547,500$ $ $733,500$

Dividends declared $200,000240,000$

Required:

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

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