Question
Classify the following investments. Each case is independent of the other. Investment Classifications (a) A bond that will mature in 4 years was bought 1
Classify the following investments. Each case is independent of the other.
Investment Classifications | ||
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(a) A bond that will mature in 4 years was bought 1 month ago when the price dropped. As soon as the value increases, which is expected next month, it will be sold. | select an Investment Classification Available-for-Sale Debt SecuritiesHeld-to-Maturity Debt SecuritiesNone of the aboveTrading Debt Securities | |
(b) 10% of the outstanding stock of Farm-Co was purchased. The company is planning on eventually getting a total of 30% of its outstanding stock. | select an Investment Classification Available-for-Sale Debt SecuritiesHeld-to-Maturity Debt SecuritiesNone of the aboveTrading Debt Securities | |
(c) Bonds were purchased in December of this year. The bonds are expected to be sold in January of next year. | select an Investment Classification Available-for-Sale Debt SecuritiesHeld-to-Maturity Debt SecuritiesNone of the aboveTrading Debt Securities | |
(d) Bonds that will mature in 5 years are purchased. The company would like to hold them until they mature, but money has been tight recently and they may need to be sold. | select an Investment Classification Available-for-Sale Debt SecuritiesHeld-to-Maturity Debt SecuritiesNone of the aboveTrading Debt Securities | |
(e) Preferred stock was purchased for its constant dividend. The company is planning to hold the preferred stock for a long time. | select an Investment Classification Available-for-Sale Debt SecuritiesHeld-to-Maturity Debt SecuritiesNone of the aboveTrading Debt Securities | |
(f) A bond that matures in 10 years was purchased. The company has committed the money for an expansion project planned 10 years from now. |
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