F7 June 2013 Q1a

Consolidated retained earnings:
Paradigms retained earnings (19,200+7400) 26,600
Stratas post acq profit(11,200*75%) 8,400
Urp in inventory (600)
Loss on equity investment
(7,500-7100). (400)

Total=. 34,000

The adjusted post acq profit of strata are:
As reported for the year 8000
Add pre acq losses 2000
Gain on equity investment
(3900-3200). 700
Adjustment for over dep
On fv of plant(3000*6/12). 500

Total =. 11,200

My question is this:
Why is pre acq losses of 2,000 added to the profits for the year and how is the 2000 losses calculated.