Mills Corporation acquired as a long-term investment $280 million of 6% bonds, dated July 1, on July 1, 2018. Company management is holding the bonds in its trading portfolio. The market interest rate (yield) was 4% for bonds of similar risk and maturity. Mills paid $330.0 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 $320.0 million.

Required:

3. At what amount will Mills report its investment in the December 31, 2018, balance sheet?

4. Suppose Moodys bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January 2, 2019, for $340 million. Prepare the journal entry to record the sale.

Req 1 and 2 Req 3 Req 4 At what amount will Mills report its investment in the December 31, 2018, balance sheet? (E rounded to 1 decimal place, .e., 5,500,000 should be entered as 5.5).) Investment 320. million