* Question Completion Status: 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 remaining cash You suggested that the best way to invest in purchasing the bonds of other companies known as dubt investments, because you believe that det investments are safe, secure, and profitable investments Required 1: You believe that the Asian Company must apply the amortized cost method to account for its purchase of debt investments, what criteria must be met to apply the amortized cost method? Required 2: Based on the information provided in the case above, can the Asian Company choose the fair value option to account for this dubt investment? If yes, can the company change to apply the amortized cost method next year? If no, briefly explain? Required 3: On January 1 2019, Asian Company purchased 40,000 bonds of Bahrain Company, par value $2.000 000 8% bonds at a price of 1880.000. The interest is payable each January 1, and the bonds mature January 1, 2024 The debt investment will provide Asian Company a 10% yled What is the journal entry to record the purchase of Bahrain Company debt investments? Required 4: Based on the information provided in required 3. prepare a bond amortization schedule for the first 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 entries to record this transaction de ENS 020 1/12 Cloudy