Question

On April 15, 2012, Bure Corp invests in the following securities:

Security	No. of Shares	Cost/Share	Div/Share	MV at 12/31/12	MV at 12/31/13
X	2,000	$30	$1	$25	$20
Y	500	200	2.50	250	175
Z	3,000	25	0	40	30

What is dividend revenue for 2013? What is the unrealized gain or loss for 2012 and 2013?

Answer 1

Calculation of DIvidends

Security	No of shares	Dividend per share
X	2,000	$                           1.00	2,000*$1 = $2,000
Y	500	$                           2.50	500*$2.50 = $1,250
Z	3,000	$                                -	0
Total			3250

Unrealized gain or loss will calculate by deducting cost or book value of the investment from market value of the investment. in given case, 2012 gain will calculate by deduct cost of the investment from 2012 market value and 2013 gain or loss will calculate by deduct 2012 market value from 2013 market value. because, we have already considered gain or loss upto 2012.

Security	No of shares	Cost per share	Total cost of share	Total market value at 2012	Unrealized gain for 2012	Total market value at 2013	Unrealized gain for 2013
X	2,000	$                     30	2,000*$30 = $60,000	2,000*$25 = S50,000	$50,000-$60,000 = $(10,000)	2,000*$20 = S40,000	$40,000-$60,000 = $(20,000)
Y	500	$                   200	500*$200 = $100,000	500*$250 = $125,000	$125,000-$100,000 = $25,000	500*$175 = $87,500	$87,500 - $100,000 = $(12,500)
Z	3,000	$                     25	3,000*$25 = $75,000	3,000*$40 = $120,000	$120,000-$75,000 = $45,000	3,000*$30 = $90,000	$90,000-$75,000 = $15,000
Total			$                         235,000	$                                   295,000	$                                            60,000	$                                   217,500	$                                             (17,500)