Tanner-UNF Corporation acquired as an investment $250 million of 6% bonds, dated July 1, on July 1, 2021. Company management is holding the bonds in its trading portfolio. The market interest rate (yield) was 8% for bonds of similar risk and maturity. Tanner-UNF paid $200 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 $210 million. Required: 4. Suppose Moodys bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2022, for $190 million. Prepare the journal entries required on the date of sale.

Ow less No Credit Date General Journal January 02, 2022 Loss on investment (unrealized, NI) Fair value adjustment Debit 20.0 1 20.0 N 20.0 20.0 January 02, 2022 Loss on investment (unrealized, NI) Fair value adjustment Cash Discount on bond investment Fair value adjustment Investment in bonds 190.0 49.5 10.5 X 250.0