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(Investment Classifications) For the following investments identify whether they are:

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1. (Investment 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.;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. 10-year bonds were purchased this year. The bonds mature at the first 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 is investing money set aside for an expansion project planned 10 years from now.

 

Paper#25001 | Written in 18-Jul-2015

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