Ignoring income taxes,choose the correct response below regarding total stockholders' equity resulting from classifying all investments for a firm either as trading securities or securities available-for-sale.
A) Stockholders' equity is the same regardless of the classification
B) Stockholders' equity is greater if the investments are classified as available-for-sale.
C) .Stockholders' equity is greater if the investments are classified as trading securities.
D) If there have been unrealized gains,classification as trading securities results in higher stockholders' equity.
Correct Answer:
Verified
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