Wagner Ltd owns 100% of Korngold Ltd. For the year ended 30 April 20X1, Korngold Ltd reported a profit of $1 million. On 30 April 20X0, Korngold Ltd had sold inventory to Wagner Ltd for a $0.6 million profit. All of this inventory was sold by Wagner Ltd on 1 June 20X0. For the financial year ending 30 April 20X1, what is the effect of consolidation adjustment (if any) in the profit or loss statement, due to the profit on this sale? Select one: Reduce group profit by $600 000. Reduce group profit by $400 000. None, because all inventory was sold. Increase group profit by $600 000.