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Tanner-UNF Corporation acquired as a long-term investment $250 million of 8% bonds, dated July 1, on July 1, 2021. Company management has classified the bonds

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Tanner-UNF Corporation acquired as a long-term investment $250 million of 8% bonds, dated July 1, on July 1, 2021. Company management has classified the bonds as an available for sale investment. The market interest rate field) was 10% for bonds of similar risk and maturity. Tanner-UNF paid $210 million for the bonds. The company will recelve 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 $220 million wints Required: 1. & 2. Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2021 and interest on December 31, 2021, at the effective (market) rate. 3. Prepare any additional Journal entry necessary for Tanner-UNF to report its investment in the December 31, 2021 balance sheet 4. 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 $200 million, Prepare the iournal entries necessary to record the sale, including updating the fair value adjustment recording any reclassification adjustment, and recording the sale. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 3 Req 4 and 2 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 $200 million. Prepare the journal entries necessary to record the sale, including updating the fair-value adjustment recording any reclassification adjustment, and recording the sale. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your swers in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5).) Show less No Date General Journal Debit Credit 1 January 02, 2 Loss on investment (unrealized, OCI) 20. Fair value adjustment 20.0 January 02, 2 Fair value adjustment Reclassification adjustment (OCI) 3 200.0 January 02, 2 Cash Discount on bond investment Loss on investment (NI)

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