Wharton, Inc., pays income taxes on capital gains $($including 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.$

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 $$220,000.$

d$.$ What effect will the sale recorded in part c have on Wharton's tax obligation for year $2?$

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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$\text{'}$ value