Part A On 1 January 2015, an 8% convertible loan note with a nominal value of RM1,200,000 was issued RM1,200,000. It is redeemable on 31 December 2018 RM1,200,000, or it may be converted into equity shares of ABC Bhd on the basis of 100 new shares for each RM200 of loan note. An equivalent loan note without the conversion option would have carried an interest rate of 10%. Interest of RM96,000 has been paid on the loan and charged as a finance cost. The present value of RM1 receivable at the end of each year, based on discount rates of 8% and 10%, are as follows: End of year 1... 2.. 3. 4. Required: 8% 10% ..0.93 0.91 ..0.86 0.83 ..0.79 0.75 ..0.73 0.68 a) Calculate the equity and liability components of the 8% convertible loan note on 1 January 2015. (3 marks) b) Assuming that all the loan stock holders choose to convert all their interests into ordinary shares on maturity, show the journal entries on 31 December 2018 to record the transactions