Problem 2: On January 1, 2020, Tyler Company paid $120,000 to buy Biscuit Inc.'s 11% four-year bonds payable with a $100,000 par value. The bonds pay interest semiannually on June 30 and December 31. Tyler intends to trade these bonds on the exchange. On December 31, Tyler's year end, the bonds had a fair market value of $125,000. Identify the classification of these bonds (trading, held-to-maturity, available-for-sale) and prepare the journal entries to be recorded by Tyler Company in 2020