X New Tab Microsoft Office M...CUNYPortalMc WebAssign stuftResearch PaperD D c o

Question

X New Tab Microsoft Office M...CUNYPortalMc WebAssign stuftResearch PaperD D c office 365CUNist MKT SEC CAMS Wharton, Inc. pays income taxes on capital gains 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 $520,000 c. Prepare a journal entry at January 4, year 2, to record the cash sale of these investments at $520,000 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. Required C Required D Prepare a journal entry at January 4, year 2, to record the cash sale of these investments at $520,000. (If no entry is select "No Joumal entry required" in the first account field.) Journal entry worksheet ale of investments at a price above cost. Debit

Explanation / Answer

c 4-Jan Cash 520000      Marketable securities 180000      Gain on sale of investments 340000 d Tax obligation will increase by = 340000*30%= $102000

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