On January 1, 2017, Palka, Inc , acquired 70 percent of the outstanding shares of Sellinger Company for $1,392,300 in cash The price paid was proportionate to Sellingers total fair value, although at the acquisition date, Sellinger had a total book value of $1,700,000 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 Sellingers accounting records by $279,000 On January 1, 2018, Palka acquired an additional 25 percent common stock equity interest in Sellinger Company for $536,250 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 2017 2018 Net income $ 472,500 $ 622,500 Dividends declared 150,000 180,000 Show Palkas journal entry to record its January 1, 2018, acquisition of an additional 25 percent ownership of Sellinger Company shares Prepare a schedule showing Palkas December 31, 2018, equity method balance for its Investment in Sellinger account Show Palkas journal entry to record its January 1, 2018, acquisition of an additional 25 percent ownership of Sellinger Company shares (If no entry is required for a transaction event, select No journal entry required in the first account field ) Prepare a schedule showing Palkas December 31, 2018, equity method balance for its Investment in Sellinger account (Amounts to be deducted should be indicated with a minus sign )

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On January 1, 2017, Palka, Inc., acquired 70 percent of the outstanding shares of Sellinger Company for $1,392,300 in cash. The price paid was proportionate

On January 1, 2017, Palka, Inc., acquired 70 percent of the outstanding shares of Sellinger Company for $1,392,300 in cash. The price paid was proportionate to Sellingers total fair value, although at the acquisition date, Sellinger had a total book value of $1,700,000. 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 Sellingers accounting records by $279,000. On January 1, 2018, Palka acquired an additional 25 percent common stock equity interest in Sellinger Company for $536,250 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:

	2017		2018
Net income	$	472,500	$	622,500
Dividends declared		150,000		180,000

Show Palkas journal entry to record its January 1, 2018, acquisition of an additional 25 percent ownership of Sellinger Company shares.
Prepare a schedule showing Palkas December 31, 2018, equity method balance for its Investment in Sellinger account.

Show Palkas journal entry to record its January 1, 2018, acquisition of an additional 25 percent ownership of Sellinger Company shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Prepare a schedule showing Palkas December 31, 2018, equity method balance for its Investment in Sellinger account. (Amounts to be deducted should be indicated with a minus sign.)