Fania Duran ACCO 302- Asignacin T5 E17-1B (L01,2) Gnvestment Classifications) For the following investments identify whether they are 1. Trading securities 2. Available-for-sale securities 3. Held-to-maturity securities Each case is independent of the other. Purchase bonds maturing in 20 years. The company intends to use the cash flow generated by the interest payments on (a) (b) Common stock was purchased based on a recommendation from the CEO's broker. The broker believes the price will (c) An investment grade bond that matures in 8 years was purchased. The company will probably hold the bonds until (d) Five-year bonds of a troubled company were purchased this year for substantially below par value. The bonds mature (e) Excess cash was used to purchase preferred stock. The preferred stock may need to be sold within the next year if (f) i5% of the outstanding stock of another company was purchased last year. The company is considering purchasing the bond to provide employee bonuses. increase substantially over the next couple of months they mature at which time the proceeds will be used to retire maturing debt in 2 months. planned expansion is completed ENG