On July $1,2026,$ Tanner$-$UNF Corporation acquired as a long$-$term investment $$160\mathrm{.}0$ million of $5\mathrm{.}0\%$ bonds, dated July $1.$ Company management has the positive intent and ability to hold the bonds until maturity. Tanner$-$UNF paid $$160\mathrm{.}0$ million 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 $31,2026,$ was $$140\mathrm{.}0$ million.

Required:

How will Tanner$-$UNF$$s investment in the bonds on July $1,2026$ affect the financial statements?

How will Tanner$-$UNF$$s receipt of interest on December $31,2026,$ affect the financial statements?

At what amount will Tanner$-$UNF report its investment in the December $31,2026,$ balance sheet?

Suppose Moody$$s bond rating agency downgraded the risk rating of the bonds motivating Tanner$-$UNF to sell the investment on January $2,2027,$ for $$110\mathrm{.}0$ million. How will the sale of the bond investment affect Tanner$-$UNF$$s financial statements?