1 as a result of the adjusting Required: 1. Prepare appropriate adjusting entry at December 31, 2021. 2. What amounts would be reported in the income statement at December 31, 2021. as a ree entry? [This is a variation of E 12-1 modified to focus on available-for-sale securities.] Tanner-UNF Corporation acquired as a long-term investment $240 million of 6% bonds, dated July 1 on 1. 2021. Company management has classified the bonds as an available-for-sale investment. The market inter (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: 1. Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2021. 2. Prepare the journal entry by Tanner-UNF to record interest on December 31, 2021, at the effective (marker) rate. ens 3. Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31, 2021, balance sheet. 4. 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 $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