Question on step acquisition

I have reviewed the CIMA F2 past paper published on 20 November 2014. The question is

QA acquired 35% of the equity share capital of LM for $255 million in 2011 when the net
assets of LM were $670 million. QA was able to exercise significant influence over LM by
virtue of this investment. QA accounted for this investment in its individual financial
statements in accordance with IAS 39 Financial instruments: recognition and measurement.

On 1 January 2014 QA acquired a further 40% of the equity share capital of LM, giving QA
control. The consideration paid was $320 million and the net assets of LM had a fair value
of $710 million on 1 January 2014.

On 1 January 2014 the initial 35% investment in LM had a fair value of $280 million.

Assume that profits, gains, and losses accrue evenly throughout the year.

Non-controlling interest had a fair value of $180 million on 1 January 2014.

LM has not issued any share capital since 2010.

Calculate the goodwill arising on the acquisition of LM.

Consideration transferred on 1 January 2014 320
Fair value of existing holding of 35% at date control is gained 280
Fair value of non-controlling interest at date of control 180
780
Fair value of the net assets acquired (710)
Goodwill arising on the acquisition 70

I would like to know, the journal entry is it like this:
Dr RE 710
Dr GW 70
Cr Investment 320+280 = 600
Cr NCI 180

1. Group profit on de-recognition of associate

Fair value of existing 35% investment at date control obtained 280
Carrying value of the associate in QA’s financial statements at
date control obtained:
Cost of investment 255
Plus 35% of post-acquisition retained earnings (710-670) 14
(269)
Gain on de-recognition 11

I would like to know, the journal entry is it like this:
Dr Investment in LM 11
Cr Gain on deemed disposal P/L 11

Also, I don’t know why Carrying value of the associate in QA’s financial statements at
date control obtained is calculated like this?
Cost of investment 255
Plus 35% of post-acquisition retained earnings (710-670) 14