The company acquired as a long$-$term investment $$240,000$ of $6\%$ bonds, dated July $1,$ on July $1,2023.$ Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate $($yield$)$ was $8\%$ for bonds of similar risk and maturity. The company paid $$200,000$ for the bonds and 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 $31,2023,$ was $$210,000.$ The entry for interest expense has not been recorded yet.

Required:

$1.$ & $2.$ Prepare the journal entry to record Mills$$ investment in the bonds on July $1,2023$and interest on December $31,2023$ at the effective $($market$)$ rate.

$3.$ At what amount will Mills report its investment in the December $31,2023$ balance sheet?