Tanner-UNF Corporation acquired as a long term investment $350 million of 7% 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 8% for bonds of similar risk and maturity. Tanner UNF paid $320 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 $330 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 tisk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2025, for $310 million. Prepare the journal entries to record the sale. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Reg 2 to 4 Reg 5 Req 0 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 $310 million. Prepare the journal entries to record the sale. Note: If no entry is required for a transaction/event, select "No tournal entry required in the first account field. Do not round Tanner-UNF Corporation acquired as a long-term investment $350 million of 7% 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 8% for bonds of similar risk and maturity. Tanner-UNF paid $320 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 $330 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 $310 million. Prepare the journal entries to record the sale. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Req 2 to 4 Req 5 Reg 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 $310 million. Prepare the journal entries 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 Req 1 Req 2 to 4 Req 5 Req 6 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. 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 2 decimal places (ie., 5,50,000 should be entered as 5.50). No 1 Transaction 1 General Journal Investment in bonds Cash Discount on bond investment 2 2 Cash 3 3 Discount on bond investment Interest revenue Fair value adjustment Gain on investment (unrealized, NI) Reg 1 000 000 Show less A Debit Credit 5 2. to 4. Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2024, interest 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 January 2, 2025, for $310 million. Prepare the journal entries to record the sale. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 4 Req 5 Req 6 At what amount will Tanner-UNF report its investment in the December 31, 2024, balance sheet? Note: Enter your answer in millions, (l.e., 10,000,000 should be entered as 10). Investment million < Req 2 to 4 Req 6 > Req 1 Req 2 to 4 Req 5 Req 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 $310 million. Prepare the journal entries 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 i intermediate calculations. Enter your answers in millions rounded to 2 decimal places (1.e., 5,500,000 should be entered as 5.50). 1 No Transaction 1 2 2 General Journali Loss on investment (unrealized, NI) Fair value adjustment Cash Discount on bond investment Fair value adjustment Investment in bonds Tanner-UNF Corporation acquired as a long-term investment $350 million of 7% 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 8% for bonds of similar risk and maturity. Tanner-UNF paid $320 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 $330 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 $310 million. Prepare the journal entries to record the sale. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 4 Req 5 Req 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 $310 million. Prepare the journal entries to record the sale Note: If no entry is required for a witne