Tanner$-$UNF Corporation acquired as a long$-$term investment $$270$ million of $8\mathrm{.}0\%$ bonds, dated July $1,$ on July $1,2024.$ Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate $($yield$)$ was $10\%$ for bonds of similar risk and maturity. Tanner$-$UNF paid $$240\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 $$250\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 effective $($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 risk rating of the bonds motivating Tanner$-$UNF to sell the investment on January $2,2025,$ for $$230\mathrm{.}0$ million. Prepare the journal entry to record the sale.