Business, 14.10.2019 17:10 insaneshootermo

Exercise 7.13 accounting for marketable securities 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. how will users of wharton’s financial statements be made aware of this substantial increase in the market value of the company’s investments? as of december 31, year 1, what income taxes has wharton paid on the increase in value of these investments? explain. prepare a journal entry at january 4, year 2, to record the cash sale of these investments at $520,000. what effect will the sale recorded in part c have on wharton’s tax obligation for year 2?

Answers: 1

Show answers

Other questions on the subject: Business

Business, 21.06.2019 14:40, carrillo4444

The owners of spokes bicycle shop worry that cash flow this winter may be insufficient to meet the current operating expenses. while they anticipate a surplus of cash inflow as warm weather approaches, they need funds now to meet the company's immediate obligations. the owners can best resolve cash flow concerns by obtaining financing.

Answers: 3

continue

Business, 22.06.2019 01:50, jjaheimhicks3419

Amanda rice has just arranged to purchase a $640,000 vacation home in the bahamas with a 20 percent down payment. the mortgage has a 7 percent apr compounded monthly and calls for equal monthly payments over the next 30 years. her first payment will be due one month from now. however, the mortgage has an eight-year balloon payment, meaning that the balance of the loan must be paid off at the end of year 8. there were no other transaction costs or finance charges. how much will amanda’s balloon payment be in eight years

Answers: 3

continue

Business, 22.06.2019 13:30, Hcalhoun21

How does hipaa address employee’s access to e-phi?

Answers: 1

continue

Business, 22.06.2019 14:30, dabicvietboi

Which of the following is an example of a positive externality? a. promoting generic drugs would benefit people. b. a lower inflation rate would benefit most consumers. c. compulsory flu shots for all students prevents the spread of illness in the general public. d. singapore has adopted a comprehensive savings plan for all workers known as the central provident fund.

Answers: 1

continue

You know the right answer?

Exercise 7.13 accounting for marketable securities wharton, inc. pays income taxes on capital gains...