Tanner-UNF Corporation acquired as a long-term investment $350 million of 7% 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-UNF decided to elect the falt value option for accounting for its investment. The market Interest rate (yield) was 8% for bonds of similar risk and maturity. Tanner-UNF paid $320 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, 2024, was $330 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, 2024, at the effective (market) rate, and fair value changes as of December 31, 2024 5. At what amount will Tanner-UNE report its investment in the December 31, 2024, balance sheel? 6. Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner UNE to sell the investment on Jamiary 2, 2025, for $310 million. Prepare the journal entries to record the sale. Complete this question by entering your answers in the tabs below. M Reg 21 Beg 5 How would Des Investment be classified on Tennee UN's balance sheet) Classification Reg24> Saved 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 on January 2, 2025, for $310 million. Prepare the journal entries to record the sale. Complete this question by entering your answers in the tabs below. Req 11 Req 2 to 4 Req 5 Req 61 ces Prepare the journal entry to record Tanner UNI'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 intermediate calculations. Enter your answers in millions rounded to 2 decimal places 0 5.50,000 should be entered as 5.50). Show less View transaction list Journal entry worksheet 2 . Record Tanner-UNF's investment in the bonds on July 1, 2024, > Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2024 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 intermediate calculations. Enter your answers in millions rounded to 2 decimal places (i.e., Mc raw View transaction list Journal entry worksheet < 1 2 3 Record interest on December 31, 2024, at the effective (market) rate. Note: Enter debits before credits. Transaction 2 General Journal Debit Credit epare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2024, inte ective (market) rate, and fair value changes as of December 31, 2024. ote: If no entry is required for a transaction/event, select "No journal entry required" in the fir termediate calculations. Enter your answers in millions rounded to 2 decimal places (i.e., 5,50 View transaction list Journal entry worksheet < 2 3 Record Tanner-UNF's investment in the bonds on July 1, 2024. Note: Enter debits before credits. Transaction General Journal Debit Credit epare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2024, inter ffective (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 firs ntermediate calculations. Enter your answers in millions rounded to 2 decimal places (i.e., 5,50,0 View transaction list Journal entry worksheet < 1 2 3 Record the entry to recognize fair value changes as of December 31, 2024. Note: Enter debits before credits. Transaction 3 General Journal Debit Credit Tanner-UNF Corporation acquired as a long-term investment $350 million of 7% bonds, dated July management has the positive intent and ability to hold the bonds until maturity, but when the bonc decided to elect the fair value option for accounting for its investment. The market interest rate (yie and maturity. Tanner-UNF paid $320 million for the bonds. The company will receive interest semiar 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2024, was 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, Inter 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-UN January 2, 2025, for $310 million. Prepare the journal entries to record the sale. Complete this question by entering your answers in the tabs below. nc TRW Req 1 Req 2 to 4 Req 5 Req 6 At what amount will Tanner-UNF report its investment in the December 31, 2024, balance sheet? Note: Enter your answer in millions, (1.e., 10,000,000 should be entered as 10). Investment million < Prev 13 of 13 Next Tanner-UNF Corporation acquired as a long-term investment $350 million of 7% bonds, dated July management has the positive intent and ability to hold the bonds until maturity, but when the bonc decided to elect the fair value option for accounting for its investment. The market interest rate (yie and maturity. Tanner-UNF paid $320 million for the bonds. The company will receive interest semiar 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2024, was 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, inter 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-UN January 2, 2025, for $310 million. Prepare the journal entries to record the sale. Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 4 Req 5 Req 6 At what amount will Tanner-UNF report its investment in the December 31, 2024, balance sheet? Note: Enter your answer in millions, (i.e., 10,000,000 should be entered as 10). Investment million T nces Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF 2, 2025, for $310 million. Prepare the journal entries to record the sale. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first accc intermediate calculations. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 View transaction list Journal entry worksheet < 2 Record the entry to adjust to fair value on the date of sale. Note: Enter debits before credits. Transaction General Journal Debit Credit ork i Saved Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-L 2, 2025, for $310 million. Prepare the journal entries to record the sale. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first a Intermediate calculations. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,00 View transaction list Journal entry worksheet < 1 2 Record the sale of the bonds on January 2, 2025. Note: Enter debits before credits. Transaction 2 General Journal Debit Credit