FVOCI equity instrument

“Aron held 3% holding of the shares in Smart, a public limited company. The investment was designated upon recognition as fair value through other comprehensive income and as at 31 May 20X7 was fair valued at $5 million. The cumulative gain recognised in equity relating to this investment was $400,000. On the same day, the whole of the share capital of Smart was acquired by Given, a public limited company, and as a result, Aron received shares in Given with a fair value of $5.5 million in exchange for its holding in Smart.
The company wishes to know how the exchange of shares in Smart for the shares in Given should be accounted for in its financial records.”

Sir how on the earth could the gain of $0.5m go in SPL??? If the shares are held at FVOCI then we will revalue the shares immediately before sale and transfer the $0.5m in OCI.

But apparently the entry passed in my kaplan exam kit is,
Dr. Cash $5.5m
Cr.SPL $0.5m
Cr. FA $5m