Tanner$-$UNF Corporation acquired as a long$-$term investment $$270$ million of $8\%$ bonds, dated July $1,$ on July $1,2024.$ Company management has classified the bonds as an available$-$for$-$sale Investment. The market interest rate $($ yield$)$ was $10\%$ for bonds of similar risk and maturity. Tanner$-$UNF paid $ $230$ million for the bonds. The company will receive interest semiannually on June $30$ and December $31.$ As a result of changing market conditions, the fair value of the bonds at December $31,2024,$ was $$240$ 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

$3.$ Prepare any additional journal entry necessary for TannerUNF to 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 $$220$ million. Prepare the journal entries necessary to record the sale, including updating the fair$-$value adjustment, recording any reclassification adjustment, and recording the sale.