QUESTION 4 A. On 1 January 2020, Mentari Bhd acquired 15% out of the 1 million units of the ordinary shares of Persada Bhd at RM40 per shares. The transaction costs incurred on the share acquisition was RM2 per share. These shares were classified as fair value through profit or loss. On 1 March 2020, the entity acquired another investment in Chenta Bhd for RM10 million and incurred RM500,000 commission costs. These shares were classified as fair value through other comprehensive income. As of 30 June 2020, the market value of the investments in Persada Bhd and Chenta Bhd were RM7.2 million and RM12 million respectively. On 31 October 2020, the investment in Persada Bhd was sold for RM7.5 million. Required: a. Financial Assets can be either classified as an equity instrument or a debt instrument. Explain the classification of financial asset in Mentari Bhd with reference to the MFRS 9 Financial Instrument. b. (6 marks) Prepare the journal entries to record the acquisition, the change in fair value and the disposal of the shares for Mentari Bhd. (6 marks)