Solution-If a company wants to increase its reported income

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If a company wants to increase its reported income by manipulating its investment accounts, which should it do?

(a) Sell its "winner" trading securities and hold its "loser" trading securities.

(b) Hold its "winner" trading securities and sell its "loser" trading securities.

(d) Hold its "winner" available-for-sale securities and sell its "loser" available-for-sale securities.

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