2 HW Help Save & Ex Submit Check my work Exercise 12-1 Securities held-to-maturity, bond investment; effective interest, discount (L012-11 Tanner-UNF Corporation acquired as a long-term investment $200 million of 6.0% bonds, dated July 1, on July 1, 2018. Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (Vield) was 8% for bonds of similar risk and maturity. Tanner-UNF paid $170.0 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 $180.0 million Required: 1. & 2. Prepare al entry to record Tanner-UNF's investment in the bonds on July 1, 2018 and interest on December 31, 2018, at the effective (market) rate. 3. At what amount will Tanner-UNF report its investment in the December 31, 2018, balance sheet? 4. 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 $150.0 million. Prepare the journal entry to record the sale Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 At what amount will Tanner-UNF report its investment in the December 31, 2018, balance sheet? (Enter your answer in millions rounded to 2 decimal places, i.e., 5,500,000 should be entered as 5.50).) million Investment Reg1 and 2 1 of 11 Next >