Fuzzy Monkey Technologies, Incorporated purchased as a long$-$term investment $$250$ million of $8\%$ bonds, dated January $1,$ on January $1,2024.$ Management intends to have the investment available for sale when circumstances warrant. When the company purchased the bonds, management elected to account for them under the fair value option. For bonds of similar risk and maturity the market yield was $10\%.$ The price paid for the bonds was $$228$ million. Interest is received semiannually on June $30$ and December $31.$ Due to changing market conditions, the fair value of the bonds at December $31,2024,$ was $$240$ million.

Required:

$1.$ to $3.$ Prepare the relevant journal entries on the respective dates $($record the interest at the effective rate$).$

$4-$a$.$ At what amount will Fuzzy Monkey report its investment in the December $31,2024,$ balance sheet?

$4-$b$.$ Prepare the journal entry necessary to achieve this reporting objective.

$5.$ How would Fuzzy Monkey$$s $2024$ statement of cash flows be affected by this investment assuming Fuzzy anticipates holding these investments for a sufficiently long period? $($If more than one approach is possible, indicate the one that is most likely.$)$