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On January 1, 2017, Palka, Inc., acquired 70 percent of the outstanding shares of Sellinger Company for $1,688,000 in cash. The price paid was proportionale to Sellinger's lolal fair value, although at the acquisition date, Sellinger had a folal book value of $2,070,000. All assols acquired and liabilities assurnod had fair values equal to book values except for a patent (six-year remaining lifc) that was undervalued on Sellinger's accounting records by $300,000. On January 1, 2018 Palka acquired an additional 25 percent common stock equity interest in Sellinger Company for $656,250 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: Net incon Dividends declared 2017 $ 525,000 170,000 2018 $701.000 210.000 a. Show Palka's joumal ontry 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. Complete this question by entering your answers in the tabs below. Required A Required B Show Palka's 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.) View transaction list Journal entry worksheet Record the acquisition of an additional 25 percent ownership of Sellinger Company shares. Note: Enter debits before credits. General Journal Debit Credit Date January 01, 2018