Tanner$-$UNF Corporation acquired as a long$-$term investment $$200$ million of $6\%$ bonds, dated July $1,$ on July $1,2024.$ Company

management has the positive intent and ability to hold the bonds until 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.

$3$a$.$ Prepare the journal entry, if needed, to record the fair value adjustment at December $31.$

$3$b$.$ At what amount will Tanner$-$UNF 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 entry to record the sale.

Complete this question by entering your answers in the tabs below.

Req $1$ and $2$

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\mathrm{.}0$ 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$.,5,000,000$ should be entered as $5).$