Tanner-UNF Corporation acquired as a long-term investment $240 million of 6% b

Tanner-UNF Corporation acquired as a long-term investment $240 million of 6% bonds dated July 1 on July 1 2013. Company management has the
positive intent and ability to hold the bonds until 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 similar risk and maturity. Tanner-UNF paid $200 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 2013 was
$210 million.

1. Record the entry to recognize fair value changes as of December 31 2013.

2. At what amount will Tanner-UNF report its investment in the December 31 2013 balance sheet?

3. Record the fair value changes as of December 31.