Question No 2: (4+6+5=15 Marks) Omni Video Corporation had the following bond issue: Date of issue/sale: May 1, 2020 Face value: OMR 300,000 Sale price of bonds: 97 Life of bonds: 5 years Stated interest rate: 5% a year payable semiannually on October 31 and April 30 Required: 1. Compute for the semi-annual interest payable, amortization and semi-annual interest expense for the years 2020 and 2021. (4 marks) 2. Pass the necessary journal entries for the bonds for the years 2020 to 2021 and upon retirement of the bonds. (6 marks) 3. Based on the given problem, how much will Omni Video Corporation show as long-term liability in December 31, 2020? How much is the balance of Bond Interest Expense as of December 31, 2020? Show your computation. (5 marks) Question No 3: (7+3=10 Marks) On January 1, 2019, TAJ Corporation purchased 140,000 shares of Optic Instrument for OMR 135,800 (OMR 0.97 per share) plus OMR 1,750 in transaction fees. In October 31, Optic declared | Page 3 ONSEMESTERBACADEMIC YEAR2019-2020 and paid OMR 0.10 per share cash dividend. On December 31, which is TAJ's year-end, the fair value of the shares was OMR 0.98 per share. On February 1, 2020, TAJ Corporation sold all of the investment for OMR0.95 per share. Required: Answer the following questions: 1. Assume that TAJ Corp. classifies this investment as Available-for-Sale, prepare all the journal entries relating to this investment from purchase to sale in the books of TAJ Corporation. Show all the necessary computations. (7 marks) 2. What would be the difference in recording if the investment was classified as Held-for-Trading? Explain