UREGNT

Tanner-UNF Corporation acquired as a long-term investment $300 million of 7% bonds, dated July 1, on July 1,2024 . Company management has classified the bonds as an available-for-sale investment. The market interest rate (yield) was 8% for bonds of similar risk and maturity. Tanner-UNF paid $280 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 $285 million. Required: 1. \& 2. Prepare the joumal entry to record Tanner-UNF's investment in the bonds on July 1, 2024 and interest on December 31,2024 , at the effective (market) rate. 3. Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31,2024 , 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, 2025, for $260 million. Prepare the journal entries necessary to record the sale, including updating the fair-value adjustment, recording any reclassification adjustment, and recording the sale. Complete this question by entering your answers in the tabs below. Prepare the fournal entry to record Tanner-UNF's investment in the bonds on July 1, 2024 and interest on December 31 , 2024, at the effective (market) rate. 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 1 decimal place, (1.e,5,500,000 should be entered as 5,5). Journal entry worksheet 2 Record Tanner-UNF's investment in the bonds on July 1, 2024. Note: Enter debits before credits