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.