On January 1, Seahawk Company purchased $770,000 on 12% bonds at face value. At December 31, the market value of the bonds increased to $810,000. Required: Prepare the valuation entry on December 31 of the current year assuming that the bonds are classified as: 1. Trading securities 2. Available-for-sale securities 3. Held-to-maturity securities

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"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"

answer; swot analysis;

answer(b) revenue account which increases;