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Exercise 12.25 (Static) Fair value option; held-to-maturity investments; financial statement effects [LO12. 1,122,123,128] Tanner-UNF Corporation acquired as a long-term investment $240 million of 6% bonds, dated July 1, on July 1, 2024. Company manogement has the positive intent and ability to hold the bonds unt maturity, but when the bonds were acquired, Tanner-UNF decided to elect the fair value option for accounting for its investment. The market interest rate (yield) was 8% for bonds of simillar risk. and maturity. Tanner.UNF paid $200 million for the bonds. The compony will recelve interest semiannually on June 30 and December 31. As a result of changing market conditions, the foir value of the bonds at December 31,2024 , was $210 million. Required: 1. How would this investment be classified on Tanner-UNFs balance sheet? 2. to 4. Prepare the joumal entry to record Tanner-UNF's investment in the bonds on July 1, 2024, interest on December 31,2024, at the effective (market) rate, and fair value changes as of December 31,2024 5. At whot omount will Tonner-UNF report its investment in the December 31, 2024, bolance sheer? 6. Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2.2025, for $190 mililion. Prepare the joumal entries to record the sale. 8 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investiment on January 2, 2025, for $190 million. Prepare the journal entries to record the sale. Nota: if no entry is required for a transaction/event, select "No joumal entry required" in the first account field. Do not round intermediate calculations. Enter vour answers in milions rounded to 1 decimal place 0.6,5,500,000 should be entered as 5.5)

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