12 Tanner-UNF Corporation acquired as a long-term investment $350 million of 7% bonds, dated July 1, on July 1, 2018. Company management has the positive intent and ability to hold the bonds until maturity, but when the bonds were acquired Tanner-UNF decided to elect the fair value option for accounting for its investment. The market interest rate (yield) was 8% for bonds of similar risk and maturity Tanner-UNF paid $320 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2018, was $330 million. Required: 1. How would this investment be classified on Tanner-UNF's balance sheet? 2. to 4. Prepare thejournal entry to record Tanner-UNF's investment in the bonds on July 1, 2018, interest on December 31,2018, at the effective rate and fair value changes as of December 31, 2018. 5. At what amount will Tanner-UNF report its investment in the December 31, 2018, balance sheet? 6. Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2019, for $310 million. Prepare the journal entry to record the sale. Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 4 Req 5 Req 6 How would this investment be classified on Tanner-UNF's balance sheet? Req2to4 > 12 uuyiuyu IV on\"... nu. run vuiu uyuuu IV! uyyvullullv IV! no lllvuaullylu. l us. \"nun\"... llllblbal nun. \\ylylu, vvua U/U IV! uvuua v: ammo" Han and maturity. Tanner-UNF paid $320 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2018, was $330 million. Required: 1. How would this investment be classied on Tanner-UNF's balance sheet? 2. to 4. Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2018, interest on December 31, 2018, at the effective rate and fair value changes as of December 31, 2018. 5. At what amount will Tanner-UNF report its investment in the December 31, 2018, balance sheet? 6. Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2019, for $310 million. Prepare the journal entry to record the sale. Complete this question by entering your answers in the tabs below. Req2t04 \"- Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2018, interest on December 31, 2018, at the effective rate and fair value changes as of December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the rst account eld. Enter your answers in millions rounded to 2 decimal places (i.e., 5,50,000 should be entered as 5.50).) View transaction list Journal entry worksheet Show lessA Record Tanner-UNF's investment in the bonds on July 1, 2018. 12 ueuueu L0 elect Llle l'dll value Oplloll IOI 'dCCOUllLlllg lUl ILS lllVeSLlllellL. Ille lll'dlKel. llllelesl [are [yielul was 670 lol UOllUS 0i Sllllll'dl \"SK and maturity. Tanner-UNF paid $320 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value ofthe bonds at December 31, 2018, was $330 million. Required: 1. How would this investment be classified on Tanner-UNF's balance sheet? 2. to 4. Prepare thejournal entry to record Tanner-UNF's investment in the bonds on July 1, 2018, interest on December 31, 2018, at the effective rate and fair value changes as of December 31, 2018. 5. At what amount will Tanner-UNF report its investment in the December 31, 2018, balance sheet? 6. Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2019, for $310 million. Prepare thejournal entry to record the sale. Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 4 Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2018, interest on December 31, 2018, at the effective rate and fair value changes as of December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the rst account field. Enter your answers in millions rounded to 2 decimal places (i.e., 5,50,000 should be entered as 5.50).) View transaction list Journal entry worksheet Record interest on December 31, 2018, at the effective (market) rate. ' Req 5 H Req 6 I Show lessA 12 UECIUEU LU eleCl Llle ldll value UpllUil lUl aCCOUIILng IUI ILS mvesunent. llle llldlKeL Illleiesl. [idle \\ylelU) WdS O70 IUI UOHUS 0| Slilllldl [ISK and maturity. Tanner-UNF paid $320 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2018, was $330 million. Required: 1. How would this investment be classified on Tanner-UNF's balance sheet? 2. to 4. Prepare thejournal entry to record Tanner-UNF's investment in the bonds on July 1, 2018, interest on December 31, 2018, at the effective rate and fair value changes as of December 31, 2018. 5. At what amount will Tanner-UNF report its investment in the December 31, 2018, balance sheet? 6. Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2019, for $310 million. Prepare thejournal entry to record the sale. Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 4 Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2018, interest on December 31, 2018, at the effective rate and fair value changes as of December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the rst account field. Enter your answers in millions rounded to 2 decimal places (i.e., 5,50,000 should be entered as 5.50).) View transaction list Journal entry worksheet Record the entry to recognize fair value changes as of December 31, 2018. ' Req 5 H Req 6 ' Show IessA 12 Tanner-UNF Corporation acquired as a long-term investment $350 million of 7% bonds, dated July 1, on July 1, 2018. Company management has the positive intent and ability to hold the bonds until maturity, but when the bonds were acquired Tanner-UNF decided to elect the fair value option for accounting for its investment. The market interest rate (yield) was 8% for bonds of similar risk and maturity. Tanner-UNF paid $320 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2018, was $330 million. Required: 1. How would this investment be classified on Tanner-UNF's balance sheet? 2. to 4. Prepare thejournal entry to record Tanner-UNF's investment in the bonds on July 1, 2018, interest on December 31, 2018, at the effective rate and fair value changes as of December 31, 2018. 5. At what amount will Tanner-UNF report its investment in the December 31,2018, balance sheet? 6. Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2019, for $310 million. Prepare thejournal entry to record the sale. Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 4 Req 5 Req 6 At what amount will Tanner-UNF report its investment in the December 31, 2018, balance sheet? (Enter your answer in millions, (i.e., 10,000,000 should be entered as 10).) 12 ueCIueu l0 eleCl Llle lall value OpllOll l0l 'dCCOUllLlllg IOI IlS Investment. llle lll'dlKeL llllelesL l'dLe (yielu) was 670 lOl UUIIUS Ul Sllillldl \"SK and maturity. Tanner-UNF paid $320 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2018, was $330 million. Required: 1. How would this investment be classified on Tanner-UNF's balance sheet? 2. to 4. Prepare thejournal entry to record Tanner-UNF's investment in the bonds on July 1, 2018, interest on December 31, 2018, at the effective rate and fair value changes as of December 31, 2018. 5. At what amount will Tanner-UNF report its investment in the December 31, 2018, balance sheet? 6. Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2019, for $310 million. Prepare thejournal entry to record the sale. Complete this question by entering your answers in the tabs below. ' Req 1 Req 2 to 4 Req 5 Req 6 Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2019, for $310 million. Prepare the journal entry to record the sale. (If no entry is required for a transaction/event, select "No journal entry required" in the rst account field. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).) View transaction list Journal entry worksheet Show lessA Record the entry to adjust to fair value on the date of sale. 12 UeCIUeU L0 elECL Llie Idll value UpllOil IUI accounurlg IO! ILS lilVESLlilenl. lile lildiKeL llllelesl Idle [ylelu] was 670 lol UUHUS 0| SllIllldi \"SK and maturity. TannerUNF paid $320 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2018, was $330 million. Required: 1. How would this investment be classified on Tanner-UNF's balance sheet? 2. to 4. Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2018, interest on December 31, 2018, at the effective rate and fair value changes as of December 31, 2018. 5. At what amount will Tanner-UNF report its investment in the December 31,2018, balance sheet? 6. Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2019, for $310 million. Prepare the journal entry to record the sale. Complete this question by entering your answers in the tabs below. Req 5 Req 6 Req 1 ' Req2to4 Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2019, for $310 million. Prepare the journal entry to record the sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).) View transaction list Journal entry worksheet Record the sale of the bonds on January 2, 2019. Show lessA