Mills Corporation acquired as a long-term Investment $260 million of 6% bonds, dated July 1 , on July 1,2024 . Company management has classlfied the bonds as an avallable-for-sale investment. The market interest rate (yleld) was 4% for bonds of similar risk and maturity. Mills pald $300 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 $280 million. Requlred: 1. \& 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. 3. At what amount will Mills report its investment in the December 31,2024 , balance sheet? 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 $314 million. Prepare the journal entries required on the date of sale