On January $1,2023,$ Palka, Incorporated, 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 $$1,380,000.$ All assets acquired and liabilities assumed had fair values equal to book values except for a patent $($six$-$year remaining life$)$ that was undervalued on Sellinger$$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.