142 Prodigal (BPP book page 45)

Hi My question is related to 142 Prodigal (BPP book page 45) 1) (ii) Immediately after the acquisition of Sentinel on 1 October 20X0, Prodigal transferred an item of plant with a carrying amount of $4 million to Sentinel at an agreed value of $5 million. At this date the plant had a remaining life of two and half years. Prodigal had included the profit on this transfer as a reduction in its depreciation costs. All depreciation is charged to cost of sales. Revenue (450,00 + (240,000 × 6/12) – (W4) 40,000) = 530,000 Cost of sales (260,000 + (110,000 × 6/12) + (W3) 800 – (W4) 40,000 + 3,000) = (278,800) QUESTION: Why the sale amount ( 5 million dollar) is not reduced from REVENUE? I think the sale amount must be deducted from revenue because of intra group trading and Cost Of Sales would have to be adjusted. Revenue (450,000 + (240,000 × 6/12) – (W4) 40,000 – 5,000) = 525,000 Cost of sales (260,000 + (110,000 × 6/12) + (W3) 800 – (W4) 40,000 + 3,000 – 5,000) = (273,800) I am right or not? 2) Other comprehensive income Prodigal Sentinel Gain on revaluation of land (note(i)) 2,500 1,000 Loss on fair value of investment in equity instrument (700) (400) 1,800 600 (i) Prodigal's policy is to revalue the group's land to market value at the end of each accounting period. Prior to its acquisition, Sentinel's land had been valued at historical cost. During the post-acquisition period Sentinel's land had increased in value over its value at the date of acquisition by $1 million. Sentinel has recognised the revaluation within its own financial statements. Other comprehensive income: Gain on land revaluation (2,500 + 1,000) 3,500 Investments in equity instruments (700 + (400 × 6/12)) (900) QUESTION: I wonder that why we take half loss (400 × 6/12 = 200) on fair value of Sentinel’s investment. It is maybe there is not any key stated that this loss occur post-acquisition period. If this is true, this means loss accrued evenly over the year. Then why we don’t take into consideration this half loss (200) when the goodwill is calculated Extract from calculation of the Goodwill on acquisition of Sentinel Fair value of net assets: Shares 160,000 Other equity reserve 2,200 Retained earnings (125,000 + (66,000 × 6/12)) 158,000 (320,200) 3) Is the following double entry true? Or not, Can you write right entry please? Unrealised profit = 1 mil Dr Retained earning of Prodigal ( cost of good) =1 mil Cr cost of asset in book of Sentinel = 1 mil Excess dep’ = (5-4)/2.5*6/12 =0.2 mil ( 6 month from acquisition to reporting day) DR Accumulated Dep’ of asset in book of Sentinel =0.2mil Cr retained earning of Prodigal ( group) =0.15 ( 75%) CR NCI = 0.05 ( 25%)