Tanner$-$UNF Corporation acquired as a long$-$term investment $$300$ million of $4\%$ bonds, dated July $1,$ on July $1,2024.$ Company management has the positive intent and ability to hold the bonds until maturity, but when the bonds were acquired, Tanner$-$UNF decided to elect the fair value option for accounting for its investment. The market interest rate $($yield$)$ was $6\%$ for bonds of similar risk and maturity. Tanner$-$UNF paid $$270$ 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 $$280$ million.

Required:

$1.$ How would this investment be classified on Tanner$-$UNF's balance sheet?

$2.$ to $4.$ 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 fair value changes as of December $31,2024.$

$5.$ At what amount will Tanner$-$UNF report its investment in the December $31,2024,$ balance sheet?

$6.$ 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 to record the sale.