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The following transactions are independent of one another. Both entities have a December financial year-end. Where applicable, all transactions have been recorded for the 2022 financial year. For the 2023 financial year, all transactions must still be recorded. Transaction 1: On 1 February 2023, Investfin Ltd purchased 9900 ordinary shares on the JSE Ltd for share trading purposes. The purchase price and fair value at the acquisition date amounted to R135 per share, with related transaction costs amounting to R6 per share. The fair value of the 9900 ordinary shares was R1 050000 on 31 December 2023. Transaction 2: Leather Goods (Pty) Ltd acquired a large manufacturing machine on 1 October 2022 from a local supplier to use in its production process. The machine, which has a cost price of R1 200000 , was purchased on credit (normal credit terms) as Leather Goods (Pty) Ltd did not have sufficient cash resources to settle the purchase price immediately. The agreement between Leather Goods (Pty) Ltd and the supplier stipulated that: - The R1 200000 capital be paid on 30 September 2026; and - Interest would not be paid on an annual basis and would accrue at 11% per annum. The total interest accrued will be paid on 30 September 2026. 1.1) Discuss how Transaction 1 should be classified and measured initially and subsequently in terms of IFRS 9. Note: No definitions are required. Apply the definitions to the scenario. (5 marks) 1.2) Prepare all the journal entries relating to Transactions 1 and 2 for the financial year ended 31 December 2023. Show all calculations and reference your calculations according to your journal entries. Round amounts to the nearest Rand. Journal dates and narrations are not required

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