Mills Corporation acquired as a long-term investment $280 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 (yield) was 4% for bonds of similar risk and maturity. Milis paid $330 million for the bonds. The company will recelve interest semiannually on June 30 and December 31 . As a result of changing market conditions, the fair value of the bonds at December 31,2024 , was $320 million. Required: 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 $340 million. Prepare the journal entries required on the date of sale