Mills Corporation acquired as a long$-$term investment $$220$ million of $6\%$ bonds, dated July $1,$ on July $1,2024.$ Company management has classified the bonds as an avallable$-$for$-$sale investment. The market interest rate $($yleld$)$ was $4\%$ for bonds of similar risk and maturity. Mills pald $$260$ million for the bonds. The company will recelve interest semiannually on June $30$ and December $31.$ As a result of changing market conditions, the falr value of the bonds at December $31,2024,$ was $$240$ million.

Required:

& $2$ Prepare the Journal entry to record Mills" Investment in the bonds on July $1,2024$ and Interest on December $31,2024,$ at the effective $($market$)$ rate.

At what amount will Mills report its Investment in the December $31,2024,$ balance sheet?

Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January $2.2025,$ for $$272$ million. Prepare the journal entrles required on the date of sale.

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Req $4$

Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January $2,2025,$ for $$272$ million. Prepare the joumal entries required on the date of sale.

Noter If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field, Do not round intermediate celculations. Enter your answers in millions rounded to $1$ decimal place, $($i$,$e$,5,500,000$ should be entered as $5\mathrm{.}5),$

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$\backslash$table$[[$No$,$Date,General Jou,,Debit,Credit$],[1,$January $02,2025,$Fair value adjustment,$0,3200,],[,,$Gain on investment $($unrealized$,$ NI$),0,,3200],[,,,,,],[2,$January $02,2025,$Cash,$0,272\mathrm{.}00,],[,,$Investment in bonds,$\frac{O}{?},,22006],[,,$Premium on bond investment,$Q,,3860],[,,$Fair value adjustment,$0,,1348],[3,$January $02,2025,$Premium on bond investment,$6,,]]$