The following investments are held by investors that are public companies:

a. A $ 5,000,000 5% publicly traded 10- year bond of Tree Limited. The bonds are held for short- term capital appreciation, as the investor is expecting interest rates to change.

b. A $ 4,000,000, 5% publicly traded bond that matures in 10 years. The bond is in a portfolio that is managed with the objective of collecting interest and principal.

c. Common shares of Shrub Limited, amounting to 30% of the outstanding shares. The remaining shares are equally divided among four other investors. Each investor has two representatives on the 10- member Board of Directors. All strategic decisions must be unanimously agreed to by the Board members.

d. Common shares of Plant Limited, amounting to 30% of the outstanding shares. The remaining shares are equally divided among eighteen other investors. The investor has two seats on the 10- member Board of Directors.

e. Common shares of Maple Inc., amounting to 3% of the outstanding common shares. Maple Inc. is a company whose shares are thinly traded on the over- the- counter (OTC) market.

f. Common shares of Elm Inc., amounting to 5% of the outstanding common shares. Elm is publicly traded. Management wishes gains and losses caused by changes in fair value to bypass earnings.

g. Common shares of Beech Limited, amounting to 16% of the voting shares. The investor has four members on the 10- member Board of Directors, and has extensive intercom-pany transactions with Beech.

h. Common shares of Spruce Corp., amounting to 60% of the common shares of Spruce. The seven- member Board of Directors consists of four members appointed by the investor.

Required:

How should the investor classify each of the above investments? What accounting method should be used foreach?