Tanner$-$UNF Corporation acquired as a long$-$term investment $$240$ million of $6\%$ bonds, dated July $1,$ on July $1,2024.$ Company management has classified the bonds as an $$vailable$-$for$-$sale investment. The market interest rate $($yield$)$ was $8\%$ for bonds of similar risk and maturity. Tanner$-$UNF paid $$200$ million for the bonds. The company will receive interest semiannually on June $30$ and December $31.$ As a result of changing market conditions, the fair value of the bonds at December $31,2024,$ was $$210$ million.

Required:

& $2.$ Prepare the journal entry to record Tanner$-$UNF's investment in the bonds on July $1,2024$ and interest on December $31,2024,$ at the effective $($market$)$ rate.

Prepare any additional journal entry necessary for Tanner$-$UNF to report its investment in the December $31,2024,$ balance sheet.

Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner$-$UNF to sell the investment on January $2,2025,$ for $$190$ million. Prepare the journal entries necessary to record the sale, including updating the fair$-$value adjustment, recording any reclassification adjustment, and recording the sale.

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Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner$-$UNF to sell the investment on January $2,2025,$ for $$190$ million. Prepare the journal entries necessary to record the sale, including updating the fair$-$value adjustment, recording any reclassification adjustment, and recording the sale.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to $1$ decimal place, $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}5).$

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Journal entry worksheet

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Record the entry for fair$-$val adjustment, AFS investmen