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 chave on Wharton's tax obligation for year 2? Complete this question by entering your answers in the tabs below. Required B Required C Required D 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 Required > Required B Required Required 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.) View transaction list Journal entry worksheet