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Tanner - UNF Corporation acquired as an investment $ 2 4 0 million of 6 % bonds, dated July 1 , on July 1 ,

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Tanner-UNF Corporation acquired as an investment $240 million of 6% bonds, dated July 1, on July 1,2024. Company management is holding the bonds in its trading portfolio. The market interest rate (yield) was 8% for bonds of similar risk and maturity. Tanner-UNF paid $200 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 $210 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 $190 million. Prepare the journal entries required on the date of sale.
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Req 1 and 2
Req 3
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.
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 5.5).
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