Bpp practice question

Bpp textbook practice question bank
Q11
Phython obtained 30% of the equity shares of Cobra on 1 june 20×8 for $700,000 .It is able to execise significant influenc over Cobra.During the year to 31 May 20×9,cobra made sales of $200,000 to phytin,priced at cost plus 25% mark up.pythin still had 50% of these goods in inventory at the year end.cobra ‘s statement of profit or loss for the year ended 31 may shows profit for the year of $650,000.
What amount should be shown as ‘investment in associate ‘in the consolidated statement of finanacial position of Python as at 31 May 20×9?
The answer is $895,000. Why the answer do not account for the unrealised profit by deducting the 30%of URP from the Cobra profit for the year ,which also reduce the investment in associate?as investment in associate include the cost of investment + group share post acquisition profit which take into account of URP?

One of the example provided in the textbook
A Co has made an unrealised profit of $200,000 (1,000,000 x 25/125) on its sales to the associate. The group’s share (25%) of this must be eliminated:
DEBIT Share of profit of associate (consolidated profit or loss)$50,000
CREDIT Investment in associate (consolidated statement of financial position) $50,000
Note that if the sale had been made by the associate to the group (an upstream transaction) the posting
would have been exactly the same.

Thank you.