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 month ago when the price dropped. As soon as the value increases, which is expected next month, it will be sold.
(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.
(c) Bonds were purchased in December of this year. The bonds are expected to be sold in January of next year.
(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.
(e) Preferred stock was purchased for its constant dividend. The company is planning to hold the preferred stock for a long time.
(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.
Trading Debt Securities
None of the above
Trading Debt Securities
Available-for-Sale Debt Securities
None of the above
Held-to-Maturity Debt Securities
Sunday, 30 July 2023
Classify the following investments. Each case is independent of the other.
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