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Tanner-UNF Corporation acquired as a long-term investment $260 million of 6% bonds, dated July 1,...

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Tanner-UNF Corporation acquired as a long-term investment $260 million of 6% bonds, dated July 1, on July 1, 2024. Company management has dassified the bonds as an avaliable-for-sale investment. The market interest rate (yieid) was 8% for bonds of similar risk and maturity. Tanner-UNF paid $220 milion 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 $230 million. Required: 1. 8. Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1,2024 and interest on December 31,2024. at the eflective (marketi) rate 3. Prepare any addifional 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 motwating Tanner-UNF to sell the irvestment on January 2,2025, for 5200 milion. Prepare the joumal entries necessary to record the sale, including updating the fair-value adjustment, recording any redassification adjustment, and recording the sale Complete this question try entering your answers in the tabs below. Journal entry worksheet 2

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