Mills Corporation acquired as a long-term investment $235 million of 8% bonds, dated July 1, on July 1, 2018. Mills determined that it should account for the bonds as an available-for-sale investment. The market interest rate (yield) was 6% for bonds of similar risk and maturity. Mills paid $270 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 $260 million. Exercise 12-11 Available-for-sale securities [LO12-1, 12-4] Mills Corporation acquired as a long-term investment $235 million of 8% bonds, dated July 1, on July 1, 2018. Mills determined that it should account for the bonds as an available-for-sale investment. The market interest rate (yield) was 6% for bonds of similar risk and maturity. Mills paid $270 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 $260 million. Required: 1. At what amount will Mills report its investment in the December 31, 2018, balance sheet? 2. Suppose Moodys bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January 2, 2019, for $280 million. Prepare the journal entries to record the sale - record the fair value adjustment entries - record any reclassification adjustment -record the sale of the investment by mills