A. JBR Bhd is a pharmaceutical company that entered into a contract with PJH Healthcare Bhd on 1 July 2020. JBR Bhd bought 100,000 ordinary share capitals in PJH Healthcare Bhd for RM500,000, incurring transaction costs of RM20,000. JBR Bhd made an irrevocable election. On 31 November 2020, the fair value of the shares was RM710,000. The shares were subsequently sold for RM750,000 on 31 December 2020. Required: a. Discuss how JBR Bhd would classify its investment in PJH Healthcare Bhd under the provisions in MFRS 9 Financial Instruments. (10 marks) b. Prepare the relevant journal entries for the transactions in accordance with the current applicable accounting standards for financial instruments. (5 marks) B. On 1 January 2020, PJH Healthcare Bhd agreed to lease a piece of medical equipment that had an estimated life of six years. The lease period is four years, at which point the asset will be returned to the leasing company and is depreciable on a straight-line basis. According to the agreement, PJH Healthcare Bhd agreed to pay RM41,500 annual rentals on 31 December every year throughout the lease period. PJH Healthcare also has agreed to guarantee the expected residual value of the medical equipment of RM15,000 at the end of its life. The medical equipment had a fair value of RM148,477 at the inception of the lease. The interest rate implicit in the lease is 8% per annum when calculating annual rentals and the lease is cancellable only with the permission of the lessor. The present values of a single payment of RM1 and the present values of annuities of RM1 received at the end of the year are as follows: Single Payment Annuities Year 1 0.9259 0.9259 Year 2 0.8573 1.7833 Year 3 0.7938 2.5771 Year 4 0.7350 3.3121 Required: a. Prepare the lease amortization schedule for PJH Healthcare Bhd. to show the allocation of the finance charge in accordance with the provisions of MFRS 16 Leases. (5 marks) b. Provide journal entries in the books of PJH Healthcare Bhd. for the year ended 31 December 2020 (5 marks) A. JBR Bhd is a pharmaceutical company that entered into a contract with PJH Healthcare Bhd on 1 July 2020. JBR Bhd bought 100,000 ordinary share capitals in PJH Healthcare Bhd for RM500,000, incurring transaction costs of RM20,000. JBR Bhd made an irrevocable election. On 31 November 2020, the fair value of the shares was RM710,000. The shares were subsequently sold for RM750,000 on 31 December 2020. Required: a. Discuss how JBR Bhd would classify its investment in PJH Healthcare Bhd under the provisions in MFRS 9 Financial Instruments. (10 marks) b. Prepare the relevant journal entries for the transactions in accordance with the current applicable accounting standards for financial instruments. (5 marks) B. On 1 January 2020, PJH Healthcare Bhd agreed to lease a piece of medical equipment that had an estimated life of six years. The lease period is four years, at which point the asset will be returned to the leasing company and is depreciable on a straight-line basis. According to the agreement, PJH Healthcare Bhd agreed to pay RM41,500 annual rentals on 31 December every year throughout the lease period. PJH Healthcare also has agreed to guarantee the expected residual value of the medical equipment of RM15,000 at the end of its life. The medical equipment had a fair value of RM148,477 at the inception of the lease. The interest rate implicit in the lease is 8% per annum when calculating annual rentals and the lease is cancellable only with the permission of the lessor. The present values of a single payment of RM1 and the present values of annuities of RM1 received at the end of the year are as follows: Single Payment Annuities Year 1 0.9259 0.9259 Year 2 0.8573 1.7833 Year 3 0.7938 2.5771 Year 4 0.7350 3.3121 Required: a. Prepare the lease amortization schedule for PJH Healthcare Bhd. to show the allocation of the finance charge in accordance with the provisions of MFRS 16 Leases. (5 marks) b. Provide journal entries in the books of PJH Healthcare Bhd. for the year ended 31 December 2020