On July 1, 2021, Hoosier Company purchased $930,000 of 10% bonds at discount. The market interest rate is 12% The bonds will last for 3 years, and pay interest semiannually on December 31^st and June 30^th.

The bond market value was $980,000 on December 31, 2021.

Required:

Prepare the appropriate journal entry on December 31, 2021, to properly value the bonds assuming the bonds are classified as:

(1.) Trading securities.

(2.) Securities available-for-sale.

(3.) Held-to-maturity securities.