question of calculating non controling adjustment.

EXAMPLE : Witch acquired 70% of the 200,000 equity shares of Wizard, its only subsidiary, on 1 April 20X8 when the
retained earnings of Wizard were $450,000. The carrying amounts of Wizard’s net assets at the date of
acquisition were equal to their fair values apart from a building which had a carrying amount of $600,000
and a fair value of $850,000. The remaining useful life of the building at the acquisition date was 40 years.
32 Questions
Witch measures non-controlling interest at fair value, based on share price. The market value of Wizard
shares at the date of acquisition was $1.75.
At 31 March 20X9 the retained earnings of Wizard were $750,000. At what amount should the noncontrolling
interest appear in the consolidated statement
of financial position of Witch at 31 March 20X9?

ANSWER: 1. fair value at acquisition 200*30%*1.75=105
2. share of post acquisition retained eranings (750-450)*30%=90
3. depreciation on fair value adjustment (250/40)*30%=(1.875)

QUESTION-1 why we do not add the difference between fair value of asset and carryng amount of asset when working on consolidated retained earnings? isnot it the part of calculating of the shares in NCI

QUESTION-2 why we make third calculation?

thank you in advance.