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Tanner - UNF Corporation acquired as a long - term investment $ 2 0 0 million of 6 % bonds, dated July 1 , 2

Tanner-UNF Corporation acquired as a long-term investment $200 million of 6% bonds, dated July 1,2024. Assume Tanner-UNF
management is holding the bonds in a trading portfolio. 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:
to 3. Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1,2024, interest on December 31,2024, at
the effective (market) rate and the fair value adjustment at December 31.
Suppose Moody's bond rating agency downgraded the risk rating of the bonds motiving Tanner-UNF to sell the investment on
January 2,2025, for $190 million. Prepare the journal entry to record the sale.
Complete this question by entering your answers in the tabs below.
Suppose Moody's bond rating agency downgraded the risk rating of the bonds motiving Tanner-UNF to sell the investment on January 2,
2025, for $190 million. Prepare the journal entry to record the sale.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in
millions, (i.e.,10,000,000 should be entered as 10).
Journal entry worksheet
Note: Enter debits before credits.
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