On January $1,2023,$ Palka, Inc., acquired $70$ percent of the outstanding shares of Sellinger Company for $$1,141,000$ in cash. The price paid was proportionate to Sellinger's total fair value, although at the acquisition date, Sellinger had a total book value of $$1,380,000.$ All assets acquired and liabilities assumed had fair values equal to book values except for a patent $(6-$year remaining life$)$ that was undervalued on Sellinger's accounting records by $$240,000.$ On January $1,2024,$ Palka acquired an additional $25$ percent common stock equity interest in Sellinger Company for $$415,000$ 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:

$\backslash$table$[[,2023,2024],[$Net income,$$340,000,$$$440,000],[$Dividends declared,$150,000,180,000]]$

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.