Assume that Faust and McCabe properly classify the portfolio. At year-end, Faust proposes to sell the securities that will increase 2014 net income, and McCabe proposes to sell the securities that will decrease 2014 net income. Is this unethical

No

Explanation:

This is not unethical because it is a common and acceptable practice among many reputable public companies in the United States to adjust their account statements according to their objectives.

Remember, every organisation had a right to decide It's accounting methods.

In this scenario, what both parties hope to achieve is to build up confidence from potential investors.