On 31 December 2023 Invest Ltd estimated the 12-month expected credit losses on the debentures to be R3 000 due to default on payments by the investee. Transaction 2: On 2 February 2023 Invest Ltd purchased 16 000 ordinary shares in Traders (Pty) Ltd, an unlisted company at R15 per share. Transaction costs amounted to R2 200. The shares were purchased as a long-term investment to earn dividend income and make a capital profit upon resale. The management of Invest Ltd irrevocably elected in terms of IFRS 9.5.7.5 to present subsequent changes in the fair value of the investment in other comprehensive income. On 31 December 2023, the shares were valued at R17 per share. Transaction 3: On 1 July 2023 Invest Ltd issued 120 6% bonds for R117 000 each. The principal value of the bonds amounts to R120 000 each. Transaction costs incurred amount to R2 500. 63 ANNEXURE F: FORMATIVE ASSESSMENT 1 Interest is payable bi-annually in arrears, during December and June each year with the first interest payment taking place on 31 December 2023. The bonds are redeem- able on 30 June 2026 at their principal value. The current market interest rate for sim- ilar bonds is 12%. REQUIRED: HFAC332-1-Jul-Dec2023-FA1-TD-V3-06072023 3.1) Discuss how each of Transactions 1 and 2 should be classified and measured initially and subsequently in terms of IFRS 9. Note: No definitions are required. Apply the definitions to the scenario. . 3.2) Prepare all the journal entries relating to Transactions 1, 2 and 3 in the records of Invest Ltd for the year ended 31 December 2023. Journal dates and calculations are required. Narrations are not required. Reference all calculations accordingly. Round all amounts to the nearest Rand. (10 marks) (28 marks)