On January $2$ of the current year, Otto Co$.$ purchased $40\%$ of Penn Co$.$s outstanding common stock. The carrying amount of Penn$$s depreciable assets was $$1,000,000$ on January $2.$ Penn$$s depreciable assets had an original useful life of $10$ years and a remaining useful life of $5$ years. Otto recognized $$8,000$ amortization for the current year ending December $31$ related to its investment in Penn due to the excess of fair value over book value on these assets. What was the fair value of Penn$$s depreciable assets on January $2$ of the current year?