Sloan Company has owned an investment during 2013 that has increased in fair value. After all closing entries for 2013 are completed, the effect of the increase in fair value on total shareholders' equity would be:
A) Higher under the available-for-sale approach than under the trading-securities approach.
B) Lower under the available-for-sale approach than under the trading-securities approach.
C) The same amount under the available-for-sale and trading-securities approaches.
D) Not possible to identify whether the available-for-sale or trading-securities approaches yield higher shareholders' equity given this information.
Correct Answer:
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