Tell me what you want to do Open in Desktop App ' ' Editing Q2. a) Microsoft owns equity-method investments in several companies. Suppose Microsoft paid $1,000,000 to acquire a 25% investment in Sun - Software Company. Sun - Software reported net income of $640,000 for the first year and declared and paid cash dividends of $420,000. 1) Record the following in Microsoft's journal: (a) Purchase of the investment, (b) Microsoft's proportion of Sun Software's net income (@) Receipt of the cash dividends. ii) What is the ending balance in Microsoft's investment account? C b) You are required to identify whether the following bonds will be issued at face value, a premium, or a discount: The market interest rate is 9%. Moonlight Inc. issues bonds with a stated rate of 8.5%. ii. Skyrocket Corporation issued 7.5% bonds when the market rate was 7.5%. iii. XSpace Corporation issued 8% bonds when the market interest rate was 6.75%. iv. TV Company issued bonds that pay cash interest at the stated interest rate of 7%. At the date of issuance, the market interest rate was 8.25%. o F7 F8 F6 F9 F10 F11 F12 Priser Insert Toen & 7 8 9 0