One N.V. acquired 40% of the outstanding ordinary shares of Two N.V. on January 1, 2019 by paying $1,000,000 for the 50,000 shares. One N.V. holds the shares for non-trading purposes, and can exercise significant influence on the operating and strategic decisions of Two N.V.. On June 1, 2019, Two N.V. declared and paid $0.50 per share cash dividend. On December 1, 2019, Two N.V. declared and paid $0.30 per share cash dividend. Two N.V. reported net income of $500,000 for 2019. The market price of Two N.V. on December 31, 2019 is $22 per share. Which of the following statements is true