Tanner$-$UNF Corporation acquired as a long$-$term Investment $$300$ million of $7\%$ bonds, dated July $1,$ on July $1,2024.$ Company. management has classified the bonds as an available$-$for$-$sale investment. The market tnterest rate $($yleld$)$ was $8\%$ for bonds of similar risk and maturity. Tanner$-$UNF pald $$280$ million for the bonds. The company will recelve interest semlannually on June $30$ and December $31.$ As a result of changing market conditions, the fair value of the bonds at December $31,2024,$ was $$285$ 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 $$260$ million. Prepare the journal entries necessary to record the sale, Including updating the falr$-$value adjustment, recording any reclassification adjustment, and recording the sale.

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Req $1$ and $2$

Req $3$

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 $$260$ million. Prepare the journal entries necessary to record the sale, including updating the fair$-$value adjustment, recoraing any reclassification adjustment, and recording the sale.

Note: If no entry is required for a transaction$/$event$,$ select $"$Na joumal 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 $355,5).$

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