Question: Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $120 million of 6% bonds, dated January 1 on January 1 2018 Management has the positive

Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $120 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 $100 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 $110 million Required: 1. to 2. Prepare the relevant journal entries on the respective dates (record the interest at the effective rate) 4. At what amount will Fuzzy Monkey report its investment in the December 31, 2018, balance sheet? 3. How would Fuzzy Monkey's 2018 statement of cash flows be affected by this investment

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