QUESTION 2 Below is the partial statement of financial position of AXL Bhd as at 31 December 2018. Equity: RM 10% cumulative convertible preference shares 5,000,000 at RM10 per share; 1,000,000 shares authorized, 500,000 shares issued and outstanding Ordinary share capital valued at RM5 per share; 5,000,000 2,000,000 shares authorized, 1,000,000 shares issued and outstanding Retained earnings 25,000,00 0 Total equity 35,000,00 0 Long-term debt: Convertible bonds payable (Issue A) 6,000,000