Bpp Kit Q272 Investment in associate

Hi Chris, hope you are doing well.

Q) Ulysses Co owns 25% of Grant Co, which it purchased on 1 May 20X8 for $5 million. At
that date Grant Co had retained earnings of $7.4 million. At the year-end date of
31 October 20X8 Grant Co had retained earnings of $8.5 million after paying out a
dividend of $1 million. On 30 September 20X8, Grant Co sold $600,000 of goods to
Ulysses Co, on which it made 30% profit. Ulysses Co had not resold these goods by
31 October.
At what amount will Ulysses Co report its investment in Grant Co in its consolidated
statement of financial position at 31 October 20X8?
1) $5,000,000
2) $5,275,000
3) $5,230,000
4) $4,855,000

Bpp answer: $5,300,000(Cost of inv-5m plus post acq 275k less PURP 45k)

Doubt:
Why have they reduced the PURP of 45k from the investment in associate figure, as it an upstream transaction from associate to the parent(dr share of profit of associate cr inventory) shouldn’t the PURP of 45k be reduced from Inventory figure rather than the Investment in associate figure? So shouldn’t the answer be $5,275,000?