Michael buys a motorboat in poor condition from Terry for $500. Unknown to Michael, the boat was stolen by a thief who had sold it to Terry six months earlier. Michael fixes the engine and restores the boat to excellent seaworthy condition by spending $50 in parts and materials and 100 hours of his time. By the time he finishes the restoration, the boat is worth $5,000. On the first day that he puts the boat in the water, its true owner appears and claims it. Michael claims that the boat rightfully belongs to him, since he was a goodfaith purchaser of it and paid its fair market price.

Assume the facts from above except that Michael rebuilds the dead outboard engine for $250 and does no other work to the boat before the owner surfaces and claims the vehicle. What result?