Question: Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $ 160 million of 8% bonds, dated January , on January 1, 2018. Management intends to

Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $ 160

Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $ 160 million of 8% bonds, dated January , on January 1, 2018. Management intends to have the investment available for sale when circumstances warrant. For bonds of similar risk and maturity the market yield was 10%. The price paid for the bonds was $142 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 $150 million. Required: 1. to 3. Prepare the relevant journal entries on the respective dates (record the interest at the effective rate) 4-a. At what amount will Fuzzy Monkey report its investment in the December 31, 2018, balance sheet? 4-b. Prepare the entry necessary to achieve this reporting objective. 5. How would Fuzzy Monkey's 2018 statement of cash flows be affected by this investment

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