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 as available$-$for$-$sale securities$.$ 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.

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Req $4$

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 $10).$

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