Group account

Hi tutor, I have a problem with this question.

The question from dec 2016:

Plow Co purchased 3,500 of the 10,000 $1 equity shares of Styre Co on 1 August 20X4 for $6.50 per share. Styre Co’s profit after tax for the year ended 31 July 20X5 was $7,500. Styre Co paid a dividend of $0.50 per share on 31 December 20X4.

Calculate the carrying amount of the investment in Styre Co in the consolidated statement of financial position of Plow Co as at 31 July 20X5 (to the nearest whole $).

solution:

Cost of investment (3,500 x $6.50) 22,750
Share of post-acquisition profit (35% x $7,000) 2,625
less dividend received (3,500 x $0.50) (1,750)
23,625

Why share of post-acquisition profit =35% x $7,000 rather than 35%x $7,500 ?