On January $1,2023,$ Palka, Incorporated, acquired $70$ percent of the outstanding shares of Sellinger Company for $$1,428,700$ in cash. The price paid was proportionate to Sellinger's total fair value, although at the acquisition date, Sellinger had a total book value of $$1,710,000.$ 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 $$321,000.$ On January $1,2024,$ Palka acquired an additional $25$ percent common stock equity interest in Sellinger Company for $$548,125$ 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$[[$Items$,2023,2024],[$Net income,$$495,000,$$$615,000$