$[$This is a variation of E $12-1$ focusing on available$-$for$-$sale securities$.]$

Tanner$-$UNF Corporation acquired as a long$-$term investment $$240$ million of $6\%$ bonds, dated July $1,$ on July $1,2018.$ The market interest rate $($yield$)$ was $8\%$ for bonds of similar risk and maturity. Tanner$-$UNF paid $$200$ million for the bonds. The company will receive interest semiannually on June $30$ and December $31.$ Company management has classified the bonds as available$-$for$-$sale investments. As a result of changing market conditions, the fair value of the bonds at December $31,2018,$ was $$210$ million.

Required:

Prepare the journal entry to record Tanner$-$UNF's investment in the bonds on July $1,2018.$

Prepare the journal entries by Tanner$-$UNF to record interest on December $31,2018,$ at the effective $($market$)$ rate.

Prepare any additional journal entry necessary for Tanner$-$UNF to report its investment in the December $31,2018,$ balance sheet.

Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner$-$UNF to sell the investment on January $2,2019,$ for $$190$ million. Prepare the journal entries necessary to record the sale, including updating the fair$-$value adjustment, recording any reclassification adjustment, and recording the sale.