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Microloft Inc. pays income taxes on capital gains at a rate of 25 %. At 31. December 2020, the company owns marketable securities that cost

Microloft Inc. pays income taxes on capital gains at a rate of 25 %. At 31. December 2020, the company owns marketable securities that cost $ 475.000 but have a current market value of

$ 730.000.

Prepare all necessary journal entries at 5. March 2021 to record the cash sale of these investments at $ 398.000. (4 points)

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

PLEASE I HAVE 20 MIN

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