Below are four recent investments of P&C, Inc. For each investment read the description of the investment and for each of the Option Lines make only one selection per line that best describes the investment.

INVESTMENT #1: Purchase a 20 year bond issued by LGS Company. The bond has a $100,000 face value and 2% coupon (stated) rate. P&C, Inc. intends to hold the bond for a while, but not until its maturity date in the year 2037. Option Lines:

A. AFS HTM Trading B. No Significant Influence Significant Influence Controlling N/A C. Debt Equity

INVESTMENT #2: Purchase 10 shares of Home Depot stock (there are currently over 1.1 billion shares outstanding). P&C, Inc plans to resell this stock very soon. This purchase is part of the companys investment strategy of frequent buying and selling. Option Lines:

A. AFS HTM Trading B. No Significant Influence Significant Influence Controlling N/A C. Debt Equity

INVESTMENT #3: Purchase 30 year bond issued by No-Name, Company. The bond has a $15,000 par value and 3% coupon (stated) rate. P&C, Inc. intends to hold the bond until it matures in 2047. Option Lines:

A. AFS HTM Trading B. No Significant Influence Significant Influence Controlling N/A C. Debt Equity

INVESTMENT #4: Purchase 10,000 shares of ANN, Inc. common stock which represents 45% ownership of the company. The $1 par value stock is acquired at $50 per share for strategic reasons and will be held long term. Option Lines:

A. AFS HTM Trading B. No Significant Influence Significant Influence Controlling N/A C. Debt Equity