Tanner-UNF Corporation acquired as a long-term investment $240 million of 6% bonds, dated July 1, on July 1, 2021. 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 $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, 2021, was $210 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, 2021, interest on December 31, 2021, at the effective market) rate and fair value changes as of December 31, 2021. 5. At what amount will Tanner-UNF report its investment in the December 31, 2021, 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, 2022, for $190 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 Reg 6 How would this investment be classified on Tanner-UNF's balance sheet? Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Reg 2 to 4 Req5 Reg 6 How would this investment be classified on Tanner-UNF's balance sheet? Classification Held-to-maturity securities Complete this question by entering your answers in the tabs below. Req 1 Reg 2 to 4 Reg 5 Reg 6 Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2021, interest on December 31, 2021, at the effective (market) rate and fair value changes as of December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place, i.e., 5,500,000 should be entered as 5.5).) Show less Transaction General Journal Credit 1 Investment in bonds Cash Discount on bond investment No Debit 1 2 2 Cash Discount on bond investment Interest revenue 3 3 Fair value adjustment Gain on investment (unrealized, NI) 5. At what amount will Tanner-UNF report its investment in the December 31, 2021, 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, 2022, for $190 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 Reg 5 Req6 At what amount will Tanner-UNF report its investment in the December 31, 2021, balance sheet? (Enter your answers in millions, (i.e., 10,000,000 should be entered as 10).) Investment million Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 4 Req 5 Req6 Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2022, for $190 million. Prepare the journal entries to record the sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5).) Show less Transaction General Journal Credit 1 Loss on investment (unrealized, NI) Fair value adjustment No Debit 1 >> 2 2 Cash Discount on bond investment Fair value adjustment Investment in bonds