Saved Help Save & Exit Chapter 12 Check m 5 Tanner-UNF Corporation acquired as a long-term investment $300 million of 7% bon Interest rate (yield) was 8 % for bonds of similar risk and maturity. Tanner-UNF paid $280 million for the bonds. The company will receive interest semiannually on June 30 and December 31. Company management is holding the bonds in its trading portfolio. As a result of changing market conditions, the fair value of the bonds at December 31, 2018, was $285 million. dated July 1, on July 1, 2018. The market 10 points Required: 1. & 2. Prepare the journal entry to record Tanner-UNF's investment in the bonds the effective (market) rate. 3. Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31, 2018, balance sheet. 4. Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2019, for $260 million. Prepare the journal entries to record the sale. on July 1, 2018 and interest on December 31, 2018, at eBook Hint Complete this question by entering your answers in the tabs below. Print Req 1 and 2 Req 3 Req 4 Refenences Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2019, for $260 million. Prepare the journal entries to record the sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5).) Show lessA View transaction list Journal entry worksheet 4D 1 Req 1 and 2 Req 3 Req 4 Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2019, for $260 million. Prepare the journal entries to record the sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5).) 10 points Show less A eBook View transaction list Hint Journal entry worksheet 2 Record the Updating the fair-value adjustment. Refernces Note Enter debits before credits Event General Journal Debit Credit Journal Req 1 and 2 Req 3 Req 4 10 Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2019, for $260 million. Prepare the journal entries to record the sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place, (1.e., 5,500,000 should be entered as 5.5).) polnts Show less A eBook View transaction list Hint Journal entry worksheet K > Print 2 Record the sale of the investment by Tanner-UNF. References Note: Enter debits before credits. Event General Journal Debit Credit 2