On 1 January 2017, Ace Berhad issued bonds with a nominal value of RM4 million for redemption at a premium on 31 December 2021. The notional interest rate of the bonds is 4% with an effective interest rate of 7%. Ace's business model objective for managing instrument is to collect contractual cash flows and the instrument has basic loan features of principal and interest cash flows. Ace Berhad reports on a yearly basis. On 1 September 2019, its business model objective for the investment changes to managing the instrument for fair value changes rather than collecting contractual cash flows. The market price of the bonds in years 2017 to 2021 is shown below: 31 December 2017 31 December 2018 31 December 2019 31 December 2020 31 December 2021 RM 4 million 4.2 million 4.48 million 4.45 million 4.69 million Required: a. Prepare an amortisation schedule to show the carrying amount of the instrument under the amortised cost model. (6 marks) b. Show the journal entries in the books of Ace Berhad for the years 2017, 2020 and 2021. (10 marks) c. Show extracts of the Statement of Profit or Loss for the years ended 31 December 2017 and 2020 in accordance to MFRS 132. (2 marks) On 1 January 2017, Ace Berhad issued bonds with a nominal value of RM4 million for redemption at a premium on 31 December 2021. The notional interest rate of the bonds is 4% with an effective interest rate of 7%. Ace's business model objective for managing instrument is to collect contractual cash flows and the instrument has basic loan features of principal and interest cash flows. Ace Berhad reports on a yearly basis. On 1 September 2019, its business model objective for the investment changes to managing the instrument for fair value changes rather than collecting contractual cash flows. The market price of the bonds in years 2017 to 2021 is shown below: 31 December 2017 31 December 2018 31 December 2019 31 December 2020 31 December 2021 RM 4 million 4.2 million 4.48 million 4.45 million 4.69 million Required: a. Prepare an amortisation schedule to show the carrying amount of the instrument under the amortised cost model. (6 marks) b. Show the journal entries in the books of Ace Berhad for the years 2017, 2020 and 2021. (10 marks) c. Show extracts of the Statement of Profit or Loss for the years ended 31 December 2017 and 2020 in accordance to MFRS 132. (2 marks)