Skysong Inc acquired 100,000 common shares, which is 25% of the outstanding common shares, of Tahiti Ltd. on January 1, 2020 for
$495,000. At the time of purchase, Tahiti Ltd. depreciable assets were undervalued by $32,000. The depreciable assets had a
remaining useful life of 5 years with no salvage value. Tahiti Ltd. declared and paid a cash dividend of $0.35 per share on July 31,
2020. Tahiti Ltd. reported $1.2 million as net income on December 31, 2020 for the year ending. Also, on December 31, 2020, the
fair value of the investment in Tahiti Ltd shares was $545,000.