On January 1, 2017, Palka, Inc, acquired 70 percent of the paid was proportionate to Sellinger's total fair value, although at the acquisition date, Sellinger had a total book value of $1,770000. 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 $276,000. On January 1, 2018, Palka acquired an additional 25 percent common stock equity interest in Sellinger Company for $550,000 in cash. On its internal records, Palka uses the equity method to account for its shares of Sellinger outstanding shares of Sellinger Company for $1,439200 in cash. The price During the two years following the acquisition, Sellinger reported the following net income and dividends: Net income Dividends declared $ 430,000 607,000 160,000 200,800 a. Show Palka's journal entry to record its January 1, 2018, acquisition of an additional 25 percent ownership of Sellinger Company shares. b. Prepare a schedule showing Palka's December 31, 2018, equity method balance for its Investment in Sellinger account abs below Complete this question by entering your answers in the t Required A Required Show Palka's journal entry to record its January 1, 2018, acquisition of an addit (If no entry is required for a transaction/event, select "No journal entry required' in the first account field.) tional 25 percent ownership of Sellinger Company shares. View transaction list Journal entry worksheet Required A Required B Show Palka's journal entry to record its January 1, 2018, acquisition of an additional 25 percent ownership (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet Record the acquisition of an additional 25 percent ownership of Sellinger Company shares. Note: Enter debits before credits. Debit Credit General Journal Date January 01, 2018 Cash Additional paid-in capital View general journal Clear entry Record entry