Excess of Fair value of machinery of Subsidiary at Acquisition

PLANK CO
This scenario relates to two requirements.

Plank Co has owned 35% of Arch Co since 1 June 20X7 and it acquired 85% of Strip Co on 1 April 20X8. The statements of profit or loss and other comprehensive income for the year ended 31 December 20X8 are.

Plank Co Strip Co Arch Co
$000 $000 $000
Revenue 705,000 218,000 256,000
Cost of sales (320,000) (81,000) (83,500)
Gross profit 385,000 137,000 172,500
Distribution costs (58,000) (16,000) (18,500)
Administrative expenses(92,000) (28,000) (29,000)
Investment income 46,000 2,000
Finance costs (12,000) (14,000) (11,000)
Profit before tax 269,000 81,000 114,000
Income tax expense (51,500) (15,000) (21,430)
Profit for the year 217,500 66,000 92,570
Other comprehensive income
Gain on revaluation of land 2,800 3,000 –
Total comprehensive income for the year 220,300 69,000 92,570
The following information is relevant

A fair value exercise conducted on 1 April 20X8 concluded that the carrying amounts of Strip Co’s net assets were equal to their fair values with the exception of an item of machinery which had a fair value of $8m in excess of its carrying amount. At 1 April 20X8, the machinery had a remaining life of three years. Depreciation is charged to cost of sales.
Since acquisition, Plank Co has sold goods to Strip Co totalling $39m Strip Co had one quarter of these goods in inventory at 31 December 20X8. During the year, Plank Co also sold goods to Arch Co for $26m all of which Arch Co held in inventory at 31 December 20X8. All of these goods had a mark-up on cost of 30%.
The investment income of Plank Co for the year ended 31 December 20X8 includes dividends from Strip Co and Arch Co (see note (iv)) It also includes $5m interest receivable on a loan made to Strip Co on 1 April 20X8
Strip Co paid a dividend to shareholders of $18m on 31 December 20X8 Arch Co paid a dividend on 31 December 20X8 of $35m
In Plank Co’s consolidated statement of financial position at 31 December 20X7 the carrying amount of Plank Co’s investment in Arch Co was $145,000. This was calculated using equity accounting.
All other comprehensive income occurred after 1 April 20X8. Unless otherwise indicated all other items in the above statements of profit or loss and other comprehensive income are deemed to accrue evenly over the year.
Required:
(a) Prepare the consolidated statement of profit or loss and other comprehensive income of Plank Co for the year ended 31 December 20X8. (18 marks)
(b) Calculate the carrying amount of the investment in Arch Co in the consolidated statement of financial position of Plank Co as at 31 December 20X8.

Hello Sir/Ma’am
there is a Excess of Fair value of machinery of Subsidiary at Acquisition by 8m . I added the prorate depreciation on it to COS and enter ‘Gain on revaluation of machinery’ in “other comprehensive income” of SOPL accordingly. however sir in the answer only the depreciation entry was entered. There were no entry on revaluation or on increase in value of machinery by 8m. Kindly clarify why please