Tanner-UNF Corporation acquired as a long-term investment $250 million of 5% 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-UNE decided to elect the fair value option for accounting for its investment. The market interest rate (yield) was 7% for bonds of simil and maturity. Tanner-UNF paid $210 million for the bonds. The company will receive interest semiannually on June 30 and Dece 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2024, was $220 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, 200 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 January 2, 2025, for $200 million. Prepare the journal entries to record the sale. Complete this question by entering your answers in the tabs below. Reg 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 2 decimal places (ie., 5.50,000 should be entered as 5.50). ew transaction list Journal entry worksheet < 2 3 Record the entry to recognize fair value changes as of December 31, 2024. Note: Enter debits before credits. Transaction General Journal 3 Fair value adjustment Gain on investment (unrealized, NI) Debit Credit >