On July 1, 2026, Tanner-UNF Corporation acquired as a long-term investment $160.0 million of 5.0% bonds, dated July 1. Company management has the positive intent and ability to hold the bonds until maturity. Tanner-UNF paid $160.0 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 $140.0 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 $110.0 million. How will the sale of the bond investment affect Tanner-UNF’s financial statements?