On January 1, 2020, Holiday Resorts Ltd. purchased 30% of Chapman Ltd.?s outstanding common shares. The balance in Holiday Ltd.?s Investment in Associate Chapman Ltd. account was $500,000 as of December 31, 2021. The following information is available for years 2020 and 2021 for Chapman Ltd.:

Required

Calculate the purchase price paid by Holiday Ltd. for Chapman Ltd. shares on January 1, 2020.

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Dividends Profit Paid $300,000 2020 $100,000 2021 $400,000 $100,000