Held for trading investments
Hi everyone,
I'm working on Q# 7 from chapter 23 and I am just wondering why they chose to calculate it the way they did.
This is how they approached it:
Unrealized losses = ($3M)
Dividends = 10% x 20M = 2M
However, the way that would make more sense to me would be:
Unrealized losses = 10% of 3M = 300,000
dividends = 10% of 20m = 2m
However, in several instances in the book, i realize that for unrealized losses/ gains, they assume that they own 100% of the shares of the company. Does anyone know why that is?
If they only own 10% of the company, then they shouldn't be hit with the entire burden of the $3m decrease in value. |
发表于 2011-7-11 19:08
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