Exercise 12-1 (Algo) Securities held-to-maturity, bond investment; effective interest, discount (L012-13 Tanner-UNF Corporation acquired as a long-term investment $200 million of 6.0% bonds, dated July 1 on July 1, 2021 Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate yield) 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, 2021 , was $180.0 million Required: 1. & 2. Prepare the journal entry to record Tanner-UNF's Investment in the bonds on July 1, 2021 and interest on December 31, 2021, at the effective (market) rate. 3. At what amount will Tanner-UNF report its investment in the December 31, 2021, 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, 2022 for $150,0 million Prepare the journal entry to record the sale, Complete this question by entering your answers in the tabs below. Reg 1 and 2 Req3 Reg 4 Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2022, for $150.0 million. Prepare the Journal entry to record the sale. (If na entry is required for a transaction/event, select "No Journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (h. 5,500,000 should be entered as 5.5)) Show less View transaction list View journal entry worksheet Prev 1 of 7 Next >