Tanner$-$UNF Corporation acquired as a long$-$term investment $$260$ million of $6\mathrm{.}0\%$ bonds, dated July $1,$ on July $1,2024.$ Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate $($yield$)$ was $9\%$ for bonds of similar risk and maturity. Tanner$-$UNF paid $$220\mathrm{.}0$ 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 $$230\mathrm{.}0$ million.

Required:

$1.$ & $2.$ 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.

$3.$ At what amount will Tanner$-$UNF report its investment in the December $31,2024,$ balance sheet?

$4.$ Suppose Moody$$s bond rating agency downgraded the risk rating of the bonds motivating Tanner$-$UNF to sell the investment on January $2,2025,$ for $$210\mathrm{.}0$ million. Prepare the journal entry to record the sale.Tanner$-$UNF Corporation acquired as a long$-$term Investment $$260$ million of $6\mathrm{.}0\%$ bonds, dated July $1,$ on July $1,2024.$ Company

management has the positlive Intent and ability to hold the bonds untll maturity. The market interest rate $($yleld$)$ was $9\%$ for bonds of

similar risk and maturity. Tanner$-$UNF pald $$220\mathrm{.}0$ million for the bonds. The company will recelve Interest semlannually on June $30$

and December $31.$ As a result of changing market conditions, the falr value of the bonds at December $31,2024,$ was $$230\mathrm{.}0$ 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 effectlve $($market$)$ rate.

At what amount will Tanner$-$UNF report Its Investment In the December $31,2024,$ balance sheet?

Suppose Moody's bond rating agency downgraded the rlsk rating of the bonds motlvating Tanner$-$UNF to sell the Investment on

January $2,2025,$ for $$210\mathrm{.}0$ million. Prepare the journal entry to record the sale.

Answer is not complete.

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 $$210\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. Do not round

intermediate calculations. Enter your answers in millions rounded to $1$ decimal place $($i$.$e$.,5,500,000$ should be entered as

$5\mathrm{.}5).$

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