PUP on non current assets

Hello Mr Chris,

In The following example from kaplan text book,the overall difference of depreciation from the transfer of the plant should be $1000,why in their treatment to this problem the $ 1000 appeared twice ,one time in the consolidated R.E and another in Subsidiary R.E ,how is that?

Thanks

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P acquired 80% of S a number of years ago. P transferred an item of
plant to S for $6,000 on 1 January 20X1. The plant originally cost P
$10,000 and had an original useful life of 5 years when purchased 3
years ago. The useful life of the asset has not changed as a result of the
transfer.

What is the unrealised profit on the transaction and how should this
be treated within the financial statements at 31 December 20X1?
Solution
Without
ransfer
With
transfer Difference
$ $ $
Cost 10,000
Depreciation (3 years) (6,000)
––––––
Carrying amount 4,000 6,000 2,000
Depreciation (1/2) (2,000) (3,000) (1,000)
–––––– –––––– ––––––
Carrying amount 2,000 3,000 1,000
–––––– –––––– ––––––
The overall adjustment would be $1,000 at the reporting date, comprising
$2,000 of initial profit less $1,000 of excess depreciation. To adjust the
financial statements using standard workings:

Dr Consolidated retained earnings (W5) $2,000
Cr Property, plant and equipment (on SFP) $1,000
Cr Subsidiary earnings (W2 Reporting date column) $1,000
The impact of the subsidiary earnings adjustment above in W2 is that
non-controlling interest will be credited with $200 (20% × $1,000) and
consolidated retained earnings will be credited with $800 (80% × $1,000).

If S had sold the plant to P, then the adjustment would have been:
Dr Subsidiary earnings (W2 Reporting date column) $2,000
Cr Property, plant and equipment (on SFP) $1,000
Cr Consolidated retained earnings (W5) $1,000
The impact of the subsidiary earnings adjustment above in W2 is that
non-controlling interest will be debited with $400 (20% × $2,000) and
consolidated retained earnings will be debited with $1,600 (80% ×
$2,000).