16 1 points SAVE ANSWER Retained earnings $50,000 $145,000 Gigi Ltd has a 30% interest in an associate, Bibi Ltd, in which it invested $60,000 on 1 July 2018. The equity of Bibi Ltd at the acquisition date was: Share capital All the identifiable assets and liabilities of Bibi Ltd were recorded at amounts equal to their fair values. Profits, income tax expense and dividends for the years ended 30 June 2019 and 2020 were as follows: 2019 2020 Profit/(loss) before tax $31,000 ($20,000) Income tax expense $12,000 Dividends paid $8,000 $5,000 Gigi Ltd does not prepare consolidated financial statements. Income tax rate is 30% The following independent transactions have occurred between the two entities: In July 2019, Bibi Ltd sold inventory to Gigi Ltd for $25,000. This inventory had previously cost Bibi Ltd $20,000, and remains unsold by Gigi Ltd as at 30 June 2020. In February 2020, Gigi Ltd sold inventory to Bibi Ltd at a before-tax profit of $7,500. Two third of this inventory was sold by Bibi Ltd before 30 June 2020. What is the balance of Investment in Bibi Ltd in Gigi Ltd's books as at 30 June 2019? a. Credit balance of $68,100 b. Debit balance of $68,100 c. Credit balance of $63,300 d. Debit balance of $63,300