...
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.
Example 3: 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.
...
Prior Cost Reduction | Prior Def Mkt Discount Reduction |
0 | 0 |
Example 4: 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.
...
Prior Cost Reduction | Prior Def Mkt Discount Reduction |
0 | 12,000 |
Example 6: 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.
...
Prior Cost Reduction | Prior Def Mkt Discount Reduction |
5,000 | 15,000 |
Loss Recovery - Continuation of
...
Example 6
Recovery factor reverses prior losses, then increases the deferred market discount by the remaining recovery amount.
...