Question 1 (15 Marks) Max and Oscar Equipment (MOE) have been in business for many years and have been successful in providing specialized equipment to the oil and gas industry that leverages their in- depth knowledge of the refining processes. Over the years they have purchased long term investments, typically bonds, that are held to maturity and provide them with stable cash flows for dividend payments to their existing shareholders. On July 1, 2020, MOE purchased 8% bonds having a maturity value of $350,000. The bonds provide the bondholders with a 7% yield. They are dated July 1, 2020, and mature on July 1, 2024, with interest payments being e- transferred on June 30th of each year. MOE uses the effective interest method, the bonds are classified as FV-OCI investments, and MOE has a June 30th year end. 1. Prepare the journal entry at the date of the bond purchase. 2. Prepare the necessary journal entries for year end 2020. Fair Value on this date is $361,000 3. Prepare the necessary journal entries for year end 2021. Fair Value on this date is $354.000 4. Discuss the implications if MOE were to sell the bonds on July 1, 2021. You can use journal entries with a hypothetical selling value to help support your answer. How could your response change if the FV-OCI classification was changed