Tanner-unf corporation acquired as a long-term investment 245 million of 8% bonds, dated July 1, on July1, 2018. The market interest rate (yield) was 10% for bonds of similiar risk and maturity. Tanner-UNF paid 200 million for the bonds. the company will receive interest semiannually on June 30 and December 31. Company management is holding the bonds in its trading profolio. as a result of changing market conditions the fair value of the bonds at december 31, 2018 was 205 million.

1 and 2 prepare journal entry to record Tannner-UNF'S investment in bonds on July 1,2018 and interest on December 31,2018 at the effective (market rate).

2 Prepare any additional journal entry neccessary for Tannner-UNF to report its investment in the December 31,2018 balance sheet

4 Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell investments on January 2,2019 for 180 Million. Prepare the journal entries to record the sale.