Quoocumber has the following financial instruments: (i) Quoocumber issued a debt instrument on 1 January 2019 at its par value of $3 million. Issue costs relating to the transaction were $200,000. The debt pays a fixed annual return of 6%. The principal amount will be repaid in 4 years' time at a premium of $400,000. The debt has an effective rate of interest of 11%. (ii) Quoocumber acquired 100,000 shares in Raddish on 15 August 2019 for $6 per share. The investment resulted in Quoocumber holding 4% of the equity shares in Raddish. The related transaction costs were $24,000. Raddish's shares were trading at $6.80 on 31 December 2019. The investment has been classified as held for trading. (ii) Quoocumber issued 300,000 $1 ordinary shares at $2.50 on 30 September 2019. Issue costs totalled $75,000. Required (a) Calculate the amounts at which each of the financial instruments should be initially recorded in the financial statements of Quoocumber, 8 marks (b) Prepare the extracts from Quoocumber's financial statements for the year ended 31 December 2019, clearly showing the amounts to be included for the three financial instruments. 12 marks (c) If the debt instrument had contained an option to convert into ordinary shares on redemption, explain how the instrument would be initially recorded in the financial statements. 6 marks (d) Explain why the effective rate of interest on the debt instrument is 11% when the annual return is 6%. 4 marks Total 30 Marks