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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 dobt investments, because you believe that debt 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 debt 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. Aslan Company purchased 40,000 bands of Bahrain Company, par value $2,000,000,8% bonds at a price of $1 880,000. The interest in payable each January 1, and the bonds mature January 1, 2024. The debt investment will provide Asian Company a 10% yield What is the journal entry to record the purchase of Bahrain Company debt investments Required 4: Based on the Information provided in required 3, preparo a bond amortization schedule for the first 2 youts? Required 5: What is the effect of previous transactions on the statement of financial position on December 31, 2020? 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 thin transaction

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