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Wharton, Inc., pays income taxes on capital gains (including gains on marketable securities) at a rate of 30 percent. At December 31 year 1 ,

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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? Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Prepare a journal entry at January 4 , year 2 , to record the cash sale of these investments at $220,000. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field.) Journal entry worksheet Record the sale of investments at a price above cost. Note: Enter debits before credits. 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 Janutary 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 ? Complete this question by entering your answers in the tabs below. What effect will the sale recorded in part c have on Wharton's tax obligation for year 2

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