Carlton Inc. pays income taxes on capital gains at a rate of 25 %. At 31. December 2020, the company owns marketable securities with historical cost of $ 150000 but have a current market value of $ 430000. a) How will the users of Carltons financial statements be made aware of this substantial increase in the market value of the companys investment ? (4 points)

b) Provided the value increase of marketable securities as of 31. December 2020, what income taxes Carlton will have to pay for this ? Explain. (4 points)

c) Prepare a journal entry at 4. January 2021 to record the cash sale of these investments at $ 430000. (4 points)

d) What effect will the sale recorded in part c) have on Whartons tax obligation for 2021 ?