Which of the following entities is not an affiliate of an SEC audit client (Companies Act restrictions do not apply)?

1)An entity in which the SEC audit client owns 75%

2(The parent company that owns 55% of the SEC audit client, and the SEC audit client is material to the parent company

3)An entity in which the SEC audit client owns a 20% interest, which is not material to the SEC audit client

4)An entity in which the SEC audit client owns a 40% interest, which is material to the SEC audit client