On page 23, example 6 which speaks to transactions with associates I cant see why unrealized profit is 25% of 16,000. Is it because only 75% of the intial sale was resold to a third party? Which I guess would account for why you seemingly take 25% of the initial figure of 64,000 profit twice… Anyone else finding that CFAi is seeming to purposefully make examples less than straight forward? I got the idea from the schweser library intro gab which is starting to become quite a pursuasive point.
http://www.analystforum.com/phorums/read.php?12,856207 - This was already discussed in another thread. Hope this helps
thank you… believe it or not I did do a search and couldn’t find that post… strange…