3.4 On 1 January x8, Joy issued 8 percent RM8,000,000 convertible loan stock at face value of RM8,000,000. The stock is convertible into ordinary shares or redeemable at par in four years' time. Each RM100 loan stock will be convertible into 50 equity shares of Joy. A finance consultant said that if the option to convert to equity had not been included in the terms of the issue, then the prevailing market rate of 12 percent would have been required to attract subscribers for the stock. The value of RMI receivable at the end of each year at a discount rate of 12 percent can be taken as: Year RM 1 0.89 2 0.80 3 0.71 4 0.64 Required: i. Calculate the equity and liability components of the 8 percent convertible loan stock on 1 January x8. ii. Assuming that all the loan stock holders choose to convert all their interests into ordinary shares on maturity, show the journal entries to record the transaction