On January 1,2020, Palka, inc, acquired 70 percent of the outstanding shares of Sellinger Company for $1,649,200 in cash. The price paid was proportionate to Sellinger's total fair value, although at the acousibon date. Selinger had a total book value of $2,100.000. All assets acquired and liablities assumed had far values equal to book values except for a patent (skyear remaining iffe) that was undervalued on Sellinger's accounting records by $246,000, On January 1, 2021, Paka acquired an addisonal 25 percent common stock equity interest in Sellinger Company for $586,250 in cash. On its internal records, Pasca uses the equily method to account for its shares of Sellinger. During the two years following the acquisition, Sellinger 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 Paka's December 31, 2021, equity method balance for is investment in Selanger account. Complete this question by entering vour answers in the tabs below. Show Palka's journal entry to record its January 1, 2021, acquisition of an additional 25 percent ownership of Sellinger Company shares. (If no entry is required for a transaction/event, select "No joumal entry required" in the first account field.) Prepare a schedule showing Palka's December 31, 2021, equity method balance for its Investment in Sellinger account. (Amounts to be deducted should be indicated with a minus sign.) Complete this question by entering your answers in the tabs below. Prepare a schedule showing Palka's December 31, 2021, equity method balance for its Investment in Sellinger account. (Amounts to be deducted should be indicated with a minus sign.) On January 1,2020, Palka, Inc, acquired 70 percent of the outstanding shares of Selinger Company for $1,649,200 in cash. The price paid was proportionate to Sellinger's total fair value, although at the acquisition date. Selinger had a totai book value or $2.100.000. All assets acquired and llabilites assumed had fair values equal to book values except for a patent (six-year remaining iffe) that was undervalued on Sellinger's accounting records by $246.000 On January 1, 2021, Paka acquired an additional 25 percent common stock equity interest in Sellinger Company for $86,250 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: 0. Show Palka's journal entry to record its January 1, 2021, acquasition of an addittonal 25 percent ownership of Selinger Company shares b. Prepare a schedule showing Palka's December 31, 2021, equity method balance for its investment in Sellinger account. Complete this question by entering vour answers in the tabs below. Show Palka's joumal entry to record its January 1, 2021, acquisition of an additional 25 percent ownership of Sellinger Company shares. (If no entry is required for a transaction/eveet, select "No joumal entry required" in the first account field.) Prepare a schedule showing Palka's December 31, 2021, equity method balance for its Investment in Sellinger account. (Amounts to be deducted should be indicated with a minus sign.)
