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  3. req. 3 & 4 need help with them and show the st

Req. 3 & 4 need help with them and show the steps ...

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Accounting

Req. 3 & 4 need help with them and show the steps image
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Mils Corporation acquired as a long term investment $260 million of 7% bonds, dated July 1, on July 1, 2018 Company management has postie int and ability to hold the bonds until maturity. The market interest rate yield was 5% for bonds ofsimilar risk and maturity. Mills paid $3200 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, 2018, was $300.0 million. Required 1. & 2. Prepare the effective (market) rate 3. At what amount will Mills report its investment in the December 31, 2018, balance sheet? t s nestmentin the bonds on Juy 1.2018 and interest on December 31,2018, at the Suppose Moodys bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January 2, 2019, for $330 million. Prepare the journal entry to record the sale

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