Wharton, Incorporated, pays income taxes on gains on marketable securities at a rate of 30 percent....
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Wharton, Incorporated, pays income taxes on gains on marketable securities at a rate of 30 percent. At December 31, year 1, the company owns marketable securities that cost $180,000 but have a current market value of $220,000. Required: b. As of December 31, year 1, what income taxes has Wharton paid on the increase in value of these investments? c. Prepare a journal entry at January 4, year 2, to record the cash sale of these investments at $250,000. d. What effect will the sale recorded in part c have on Wharton's tax obligation for year 2? Complete this question by entering your answers in the tabs below. Required C As of December 31, year 1, what income taxes has Wharton paid on the increase in value of these investments? Income taxes paid on the increase in the securities' value wwwww Required B Required D Required B Required C > Wharton, Incorporated, pays income taxes on gains on marketable securities at a rate of 30 percent. At December 31, year 1, the company owns marketable securities that cost $180,000 but have a current market value of $220,000. Required: b. As of December 31, year 1, what income taxes has Wharton paid on the increase in value of these investments? c. Prepare a journal entry at January 4, year 2, to record the cash sale of these investments at $250,000. d. What effect will the sale recorded in part c have on Wharton's tax obligation for year 2? Complete this question by entering your answers in the tabs below. Required C As of December 31, year 1, what income taxes has Wharton paid on the increase in value of these investments? Income taxes paid on the increase in the securities' value wwwww Required B Required D Required B Required C >
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Required b Wharton has not paid any income taxes on the increase in the value of the marketable secu... View the full answer
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-1259692406
18th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Posted Date:
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