Pup -NCI post acquisition profit

Hello Sir, Why in the following exam question (I could not copy the question) the PUP at 240 k was not adjusted in the post acquisition profit of the NCI when we want to distribute the profit for the year in profit and loss since the Journal entry is DR Retained Earnings of Parent CR Inventory of the subsidiary the question is from Financial Reporting March/June 2021 exam (20/21 , Answer Gold Co (a) Goodwill $’000 $’000 $’000 Consideration: Deferred cash (90% x 16,000 x $2·42 x 0·9091) 31,680 Shares (90% x 16,000 x 3/5 x $8·40) 69,120 –––––––– 100,800 Non-controlling interest (NCI) (10% x 16,000 x $3·50) 5,600 –––––––– 106,400 Less: FV of net assets at acquisition Equity shares 16,000 Retained earnings: At 1 October 20X1 56,000 1 October 20X1–1 January 20X2 (9,920 x 3/12) 2,480 58,480 ––––––– Fair value adjustments: Plant 2,600 Contingent liability (850) ––––––– (76,230) –––––––– Goodwill 30,170 –––––––– –––––––– b) Consolidated statement of profit or loss for the year ended 30 September 20X2 $’000 Revenue (103,360 + (60,800 x 9/12) – 5,400 (W1)) 143,560 Cost of sales (81,920 + (41,600 x 9/12) – 5,400 (W1) + 240 (W1) + 650 (W2)) (108,610) –––––––– Gross profit 34,950 Distribution costs (2,560 + (2,980 x 9/12)) (4,795) Administrative expenses (6,080 + (3,740 x 9/12)) (8,885) Share of profit from associate (3,000 x 40%) 1,200 Finance costs (672 + 136 (W3) + 2,376 (W4)) (3,184) –––––––– Profit before tax 19,284 Income tax expense (4,480 + (2,560 x 9/12)) (6,400) –––––––– Profit for the year 12,886 –––––––– Profit attributable to: Owners of the parent 12,207 NCI (W5) 679 –––––––– 12,886 –––––––– Workings W1 – Intercompany and PUP Post-acquisition sales = ($600 x 9) = $5,400 PUP = (1,200 x 25/125) = $240 W2 – FV depreciation on plant = ($2,600/3 x 9/12) = $650 W3 – Convertible loan – calculate liability component $’000 DF 8% $’000 Liability: Interest (10,000 x 6%) = 600 3·993 2,396 Principal 10,000 0·681 6,810 –––––– Liability 9,206 –––––– –––––– $’000 Interest charge to PL: ($9,206 x 8%) = 736 Interest already charged (600) –––– 136 –––– –––– W4 – Deferred cash consideration Unwinding of discount on deferred consideration (see goodwill calculation): $31,680 x 10% x 9/12 = $2,376 W5 – NCI $’000 Silver’s profit for the year ($9,920 x 9/12) 7,440 FV Depreciation (W2) (650) –––––– 6,790 –––––– NCI share 10% 679