On January 1, 2022, Pastel Inc. (Pastel) purchased 97,500 voting shares of Sunny Corporation (Sunny) for $253,500. Sunny has 150,000 outstanding voting. On that date, Sunny's common shares and retained earnings were valued at $60,000 and $90,000, respectively. Sunny's book values approximated its fair values on the acquisition date with the exception of the company's patent, which was estimated to have a fair value that was $70,000 in excess of its recorded book value. The patent had a useful life of 14 years on acquisition date. Both companies use straight line amortization exclusively. On January 1, 2023, Pastel purchased an additional 9,000 shares of Sunny on the open market for $27,000. On this date, Sunny's book values were equal to its fair values with the exception of the company's equipment, which is undervalued by $60,000. The equipment's estimated useful life is 5 years