Problem 1: On March 1, 2020, Gracie Company paid $55,000 to buy Remington Inc.'s 7% two-year bonds payable with a $60,000 par value. The bonds pay interest semiannually on August 31 and Feburary 28 and Gracie has the intent and ability to hold the bonds. On December 31, Gracie's year end, the bonds had a fair market value of $53,000. Identify the classification of these bonds (trading, held-to-maturity, available-for-sale) and prepare the journal entries to be recorded by Gracie Company in 2020