Festion 2 Case No. 1:19) marks) 9 points Read the following case and use your knowledge, skills, and critical thinking to answer the questions below. You work as CFO of Asian Company which has great amount of remaining cash You are working hard to provide your experience for investing the coming cash You and the best way to invest in purchasing the bonds of other companios known as debt investments, because you believe that debt investments are safe, secure and problemes Required 1: You believe that the Asian Company must apply the amortized cost method to account for its purchase of debt revestiments, what crtera must be met topply the amortized cost metar Required 2: Based on the information provided in the case above, can the Asian Company choose the fair value option to account for this datt investeerd? If yes, can the company change to apply the amortized cost mothod next year? if no, briefly explain? Required 3: On January 1, 2019 Asian Company purchased 40.000 bonds of Bahrain Company, per viata $2.000.000,8% bonds at a mosott 880,000 The interest is payinbio each wary and the bonds mature January 1, 2024 The debt investment will provide Asian Company a 10% yold. What is the journal entry to tocand the purchase of Baum Company debt resten Required 4 Based on the information provided in required 3.propare a bond amortization schedule for the test 2 years? Required 5: What is the effect of previous transactions on the statement of financial position on December 31, 20207 Required 6: Assume that Asian Company sold its investment in Bahrain Company on July 1, 2020, at 98 plus accrued interest prepare the journal ones to record the transaction