Mills Corporation acquired as an investment $$290$ million of $8\%$ bonds, dated July $1,$ on July $1,2024.$ Company management is holding the bonds in its trading portfolio. The market interest rate $($yleld$)$ was $6\%$ for bonds of similar risk and maturity. Mills pald $$340$ million for the bonds. The company will recelve Interest semlannually on June $30$ and December $31.$ As a result of changling market conditions, the fair value of the bonds at December $31,2024,$ was $$330$ 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.

Prepare the journal entry by Mills to record any fair value adjustment necessary for the year ended December $31,2024.$

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 $$350$ million. Prepare the journal entries required on the date of sale.