Question: Fuzzy Monkey Technologies Inc purchased as a long - term investmetn $ 6 0 million of 6 % bonds, dated Jan 1 , on Jan

Fuzzy Monkey Technologies Inc purchased as a long-term investmetn $60 million of 6% bonds, dated Jan 1, on Jan 12021.Management has the positive intent and ability to hold the bonds until maturity. For bonds of similar risk and maturity the market yield was 8%. The price paid for the bonds was $46 million. Interest is received semianually on June 30 and Dec 31. Due to changing market conditions the fair value of the bonds at Dec 312021 was $50 million.
1 to 3. Prepare the relevant journal entries on the respective dates.
4. At what amount will Fuzzy Monkey report its investment in Dec 31,2021 balance sheet?
5. How would Fuzzy Monkey's 2021 statement of cash flows be affected by this investment?

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