1001
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for P5,000,000. The book value of Bebe's identifiable net assets on this date was at P14M. All its assets
carrying value approximated their fair values except for a depreciable assets with a remaining life of 5
Bebe reported total comprehensive income in 2020 at P4,000,000 which was net of a foreign exchange
loss reported in as other comprehensive toss at P800,000. Bebe also paid dividends at P1.5M at the end
of the year. P500,000 of which is from pre-acquisition Retained Earnings. The fair market value of shares
Requirements:
51. What is the carrying value of Lablab's Investment in Bebe shares as of December 31, 2020 using the
a. 5,654,000 c. 5,990,000
b. 5,750,000 d. 5,894,000
52. Assuming that Lablab Corp. is a medium-sized entity and that the company uses the fair value
method
in accounting for its investment in Bebe, how much in total should be recognized in Lablab Corp.'s profit
a. 1,750,000 c. 1,300,000
b. 450,000 d. 300,000
53. Assuming that Lablab Corp. sold 18,000 shares of its Bebe shares investment on December 31, 2020
at its prevailing fair value, how much in total should be recognized in the profit or loss as a result of the
transaction?
a. 387,600 c. 406,000
b. 646,000 d. 243,600
54. Using the information in the previous tem, how much shall be the carrying value of any remaining
a. 2,357,600 c. 2,300,000
b. 2,520,000 d. 2,261,600
55. Assuming that Bebe issued 25,000 shares to other stockholders on December 31, 2020 at prevailing
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fair value without Lablab Corp's participation, how much should be recognized in the profit or loss as a
a. 81,200 c. 129,200
b. 196,200 d. None
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