7. Green's Enterprise is contemplating the most feasible method of obtaining financing. It was proposed that the entity should issue a four-year convertible loan note. The loan note will have a nominal value of $100 million, which will have a nominal rate of 4% when the market rate of interest is 10%. The loan will pay interest on annual basis. Required: a. What amounts will be shown as a financial liability and as equity when the convertible loan notes are issued? Show the relevant journal entries. b. What amounts will be shown in the statement of profit or loss and statement of financial position for year two? c. Assuming the loan did not have any conversion features, but was instead issued at a discount of 15% and had issue cost of $4.019 million: i. show the journal entries for the initial issue of the loan ii. determine its carrying value at the end of the each of the four years iii. show the relevant financial statement extracts at the end of the first year