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Tanner-UNF Corporation acquired as a long-term investment $280 million of 6% bonds dated July 1, on July 1, 2021. Company management has the positive intent

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Tanner-UNF Corporation acquired as a long-term investment $280 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 $250 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 $260 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) 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 $240 million. Prepare the journal entries to record the sale. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 to 4 Req5 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) 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 2 decimal places (le, 5,50,000 should be entered as 5.50)-) Show less View transactions Journal entry worksheet 1 2 3 Record Tanner-UNF's Investment in the bonds on July 1, 2021. Noter debts before credits Lal Journal Debit

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