Quick Q-Bank question. The unrealized portion got me on this one… (hope formating isn’t mental) --------------------------------- 2006 Q1 ---- 2006 Q2 ---- 2006 Q3 ------ 2006 Q4 Shares purchased (sold) – 1,000-------- (200)----------700------------ 0 Total shares quarter-end-- 1,000 ------- 800 ---------- 1,500---------- 1,500 Purchase price ---------------50.00 ------------------------ 45.00 --------- Sale price ------------------------------------ 45.00 Quarter-end market price --52.00 ------ 43.00 --------- 52.00 ---------- 60.00 Total dividends ---------------500 ----------400 -----------750 --------------750 What is the income from the portfolio if the securities are classified as trading, available-for-sale, and held-to-maturity, respectively? Trading, Available-for-sale, Held-to-maturity A) $19,900 $1,400 $1,400 B) -$6,600 $1,400 $1,400 C) $19,900 $19,900 -$6,600 D) $1,400 $1,400 $19,900
A all the way
HTM/ AFS ------------ Div Inc = 500 + 400 + 750 + 750 = 2400 R G/L = 0 + (45-50)*200 + 0 + 0 = -1000 HTM = AFS = 1400 TS ----- Div Inc = 500 + 400 + 750 + 750 = 2400 R G/L = 0 + (45-50)*200 + 0 + 0 = -1000 UG1 = (MV - OC) = (800*60 - 800*50) = 8K UG2 = (MV - OC) = (700*60 - 700*45) = 10.5K Total = UG = 18.5K TS = 2400 -1000 + 18500 = 19900 A??
I just treat every quarter as marked to market. FV - PP = MVA Add divs add unreaalized g/l bada bing bada boom
Yep - A is the answer
A: divident income 2,400 capital gain: 60*1,500+45*200-45*700-50*1,000=17,500 total gain: 2,400+17,500=19,900 -> income for trading securities income statement is same for available-for-sale and held-to-maturity -> A