Fuzzy Monkey Technologies, Inc., purchased as a long$-$term investment $$60$ million of $6\%$ bonds, dated January $1,$ on January $1,2018.$ Management has the positive intent and ability to hold the bonds until maturity. For bonds of similar risk and maturity the market yield was $8\%.$ The price paid for the bonds was $$46$ million. Interest is received semiannually on June $30$ and December $31.$ Due to changing market conditions, the fair value of the bonds at December $31,2018,$ was $$50$ million.

Required:

Prepare the journal entry to record Fuzzy Monkey$$s investment on January $1,2018.$

Prepare the journal entry by Fuzzy Monkey to record interest on June $30,2018($at the effective rate$).$

Prepare the journal entries by Fuzzy Monkey to record interest on December $31,2018($at the effective rate$).$

At what amount will Fuzzy Monkey report its investment in the December $31,2018,$ balance sheet? Why?

How would Fuzzy Monkey$$s $2018$ statement of cash flows be affected by this investment?