On January 1, 2020, Paka, inc, acquired 70 petcent of the outstanding stares of Sellinger Company for $1,277,500 in cash, The price paid was proportionate to Sellinger's total fair value, although at the acquisition date, 5 ellinger had a total book value of $1,500,000. All assets acquied and liabilities assumed had fair values equal to book values except for a patent (saxyyear remaining life) that was undervalued on Sellinger's accounting records by $315,000. On January 1, 2021, Palka acquired an additional 25 percent common. stock equity interest in Sellinger Compsny for $501,875 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: a. Show Palka's journal entry to record its January 1, 2021, acquisition of an additional 25 percent ownership of Sellinger Company shares. b. Prepare a schedule showing Palka's December 31, 2021, equity method balance for its investment in Selinger account. Complete this question by entering your answers in the tabs below. Frepare us schedule showing Palkah December 31, 2021, equily method balonce for its investment in Selinger account. (Arounts to be ideducted should be indicared with a minus slya.)