QUESTION 3 The management of Que-B Bhd is targeting to accumulate funds to finance its projects. The strategy is to keep several portfolios with the specific intention to obtain the gains if the value of the investment appreciates in the future. Security portfolios I and II are held at the end of Que-B Bhd's first year of operations and are shown in the following table: Year-end Security Cost Market Value RM36,000 RM39,000 II RM17,000 RM20,000 Required: a) Explain how Que-8 Bhd would initially recognise and measure the investments. b) Explain how Que-B Bhd would subsequently measure the investments. c) Provide the necessary journal entries to record the adjustments of the securities portfolios to market value. d) As soon as adjusting the securities' values to their corresponding market values, Que-B Bhd elects to reclassify Security I as an FVTOCI security. On the date of the transfer, security l's market value is RM19,000. i. Explain how this should be accounted for by Que-B Bhd. ii. Show the relevant journal entries