Use the Following Information to Answer Questions

question 32

Multiple Choice

Use the following information to answer questions
Wells Inc.reported these transactions relating to marketable trading investments intended to generate profits and to be sold in the near term:

-The entry, if any is required, to record the value of the investment on December 31 would include a debit to

• A)Realized Loss for $450.
• B)Unrealized Loss for $750.
• C)No entry is required.
• D)Unrealized Loss of $450.

---

Definitions:

Preparer Tax Identification Number

A unique identification number that all paid tax return preparers must use on U.S. federal tax returns or claims for tax refunds submitted to the IRS.

Marginal Tax Rate

The rate at which the last dollar of a taxpayer's income is taxed, indicating the rate of tax applied to your highest level of income.

Federal Tax Legislation

Laws passed by the United States Congress that relate to taxes imposed by the federal government.

Senate Finance Committee

A powerful committee in the United States Senate that deals with matters related to taxation, revenue, and other financial policies.