JoeyDVivre

L1toL3EZ Wrote:
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> Thanks you everyone.
>
> I guess it makes sense. So they could have said
> that the $2 Million dollar dividend for Jan 1 to
> April 30, was paid Dec 31, and that $2 Million
> would still have to be counted in HP1?? (Yea a
> little weird but just want to grasp the timing
> idea of earned and received)

If the dividend wasnt received during the holding period you would not count the cash flow. If instead the dividend payment occurred at Dec 31 of that same year (after April 30), you would not record the dividend in the Jan - May returns, there was no cash flow. it would be included in the Jan - December returns. The income earned is specific to the time period and cash flow dependent.