omework mework Tanner-UNF Corporation acquired as a long-term investment $340 million of 6% bonds, dated July 1, on July 1, 2018, Company management has the positive intent and ability to hold the bonds until maturity. but when the bonds were acquired Tanner-UNF decided to elect the fair value option for accounting for its investment. The market interest rate(yield) was 9% for bonds of similar risk and mati ty. Tanner-UNF paid $310 million for the bonds. The company will receive interest semiannually on June 30 and December 3t. As a wsult of changing market conditions, the fair value of the bondls at December 31, 2018, was $320 million. Required: 1. How would this investment be classified on Tanner-UNFs balance sheet? 2. to 4. Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2013, interest on December 31, 2018, at th effective rate and fair value changes as of December 31, 2018. 5. At what amount will Tanner-UNF report its investment in the December 31, 2018, balance sheet? 6. Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2. 2019, for $300 million. Prepare the journal entry to record the sale Complete this question by entering your answers in the tabs below. Re1 Req 2 to 4 Req 5 Req 6 How would this investment be eclassified on Tanner-UNF's balance sheet? Classification Req 2 to 4> View transaction list Journal entry worksheet 2 3 Record Tanner-UNF's investment in the bonds on July 1, 2018. Note: Enter debits before credits Event General Journal Debit Credit Record entry Clear entry View general journal View transaction list Journal entry worksheet Recor nterest on December 31, 2018, at the effective (market) rate. Note: Enter debits before credits Event General Journal Debit Credit Record entry Clear entry View general journal rch Journal entry worksheet Recora the entry to recognize fair value changes as of December 31, 2018. Note: Enter debits before credits Event General Journal Debit Credit Record entry Clear entry View general journal K Pre8 of 10N arch fective rate and fair value changes as f Deember 31, 2018, . At what amount will Tanner-UNF report its investment in the December 31, 2018, balance sheet? . Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the anuary 2, 2019, for $300 million. Prepare the journal entry to record the sale. Complete this question by entering your answers in the tabs below Req 1 Req 2 to 4 Req 5 Req 6 At what amount will Tanner-UNF report its investment in the December 31, 2018, balance sheet? (Enter your answer in millions, (ie., 10,000,000 should be entered as 10).) nvestment million Req 2 to 4 Req 6 > K Prey 8 of 10l Next > earch Complete this question by entering your answers in the tabs below Req 1 Rea 2 to 4 R Req 6 Suppose Moody's bond rating agency dewngraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2019, for $300 million. Prepare the journal entry to record the sale. [If no entry is required for a transaction/event, select No journal entry required" in the first account field. Enter your answers illions rounded to 2 decimal places (ie, 5,500,000 should be entered as 5.50).) Journal entry worksheet Record the entry to adjust to fair value on the date of sale debits bafore credrs Event General Journal Debit Credit Prey 8of toll: Next > ere to search View transaction list Journal entry worksheet Record the sale of the bonds on January 2, 2019. Note: Enter debits before credits Event General Journal Debit Credit Record entry Clear entry View general journal K Re