On January 1, 2017 Palka, Inc, acquired 70 percent of the outstanding shares of Sellinger Company for $1,328,600 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 $1.660,000. 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 $228,000. On January 1, 2018, Palka acquired an additional 25 percent common stock equity interest in Sellinger Company for $510,000 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, Selinger reported the following net income and dividends: Net Income Dividends declared 2017 $ 470.000 190,00 2018 $ 580,000 220,000 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a schedule showing Palka's December 31, 2018, equity method balance for its Investment in Sellinger account. (Amounts to be deducted should be indicated with a minus sign.) Initial value for acquisition Adjusted subsidiary net income 2017 Subsidiary dividends 2017 Adjusted fair value of newly acquired shares A Mister Sitesiar 21 nat in me $ 1,328,600 301,000 (133.000) 535.000 30O 513 Prey 1 of 1 :: Next