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Unamortized Market Discount (Mkt Dis) is not a stored value in Eagle but is displayed as a balance in the example below for illustrative purposes.

Examples

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Loss factor is less than the amount of unamortized discount (excluding deferred amortization)

Apply full unit reduction as a decrease in quantity and do not impact the remaining amount of deferred market discount.

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Prior Cost Reduction

Prior Def Mkt Discount Reduction

0

0

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Loss factor is greater than the amount of unamortized discount but less than the total of unamortized discount and deferred market discount

Apply loss factor as a reduction of quantity and reduce deferred market discount for the amount of loss factor that is greater than the unamortized discount.

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Prior Cost Reduction

Prior Def Mkt Discount Reduction

0

12,000

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Loss Factor is Greater than the Total Unamortized Discount and Deferred Market Discount

Apply loss factor as a reduction of quantity and reduce deferred market discount to zero. The remaining loss factor results in a realized capital loss.

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