Exercise 12-5 Trading securities (LO12-2] 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 bands The company will receive interest semiannually on June 30 and December 31 Company management is holding the bonds in its trading portfolio. As a result of changing market conditions, the fair value of the bonds at December 31 2018, was $210 million Required: 1. & 2. Prepare the journal entry to record Tanner-UNFS Investment in the bonds on July 2018 and interest on December 31, 2018 at the effective (market rate 3. Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31, 2018 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, 2019, for $190 milion Prepare the journal entries to record the sale Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1 and 2 Req3 Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tannel UNF to sell the investment on January 2, 2019, for $190 million. Prepare the journal entries to record the sale. (If no entry is required for a transaction/event, select No jornal antry required in the first account feld. Erster vaurauwers in ons rounded to dedmal place. (le 5,900,000 should be entered as 5,5)) Show less No Event 1 General Journal Urealized holding less NI Fair value adjustment Discount on bond invest Far stant