In which of the following situations would a CPA’s independence be considered impaired according to the Code of Professional Conduct?
1) The CPA has a car loan from a bank that is an audit entity. The loan was made under the same terms available to all customers.
2) The CPA has a direct financial interest in an audit entity, but the interest is maintained in a blind trust.
3) The CPA owns a commercial building and leases it to an audit entity. The rental income is material to the CPA.
A) 1 and 2.
B) 2 and 3.
C) 1 and 3.
D) 1, 2, and 3.