Exercise 12-10 (Algo) Available-for-sale securities [LO12-1, 12-4] Tanner-UNF Corporation acquired as a long-term investment $235 million of \&\% bonds, dated July 1, on July 1, 2024. Company management has classified the bonds as an available-for-sale investment The market interest rate (yield) was 10\% for bonds of similar risk and maturity. Tanner-UNF paid $200 million for the bonds. The company will recelve interest semlannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31,2024 , was 5215 million. Required: 1. \& 2. Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2024 and interest on December 31, 2024 , at the effective (marketi) rate. 3. Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31 , 2024 , balance sheet. 4. Suppose Moody's bond rating agency downgraded the risk rating of the bonds motlvating Tanner-UNF to sell the investiment on January 2, 2025, for $180 million. Prepare the journal entries necessary to record the sale, including upcating the fair-value adjustment, recording any reclassification adjustment, and recording the sale, Complete this question by entering your answers in the tabs below. Suppose Moody's bond rating agency downgraded the risk rating of the bonds mativating Tanner-UNF to sell the investment on January 2 , 2025, for $180 million. Prepare the joumal entries necessary to record the sale, including updating the fair-value adjustment, recording any reclassification adjustment, and recording the sale. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate caloulations. Enter your answers in millions rounded to 1 decimal place, (i.e., 5,500,000 shauld be entered as 5.5 ). Journal entry worksheet show lessia Record the entry for fair-value adjustment, AFS investment. Nats: Enter debits hefare credits