Re: calculations and rounding
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Posted by Mark on January 25, 2000 at 08:43:18:
In Reply to: calculations and rounding posted by Daniel Comeau on January 24, 2000 at 17:50:00:
:
: I'm trying to figure out what I'm doing wrong. I'm trying to manually calculate
: the "Tax Basis AVG (end)" using excel, and comparing it to Fund Manager.
: I'm pretty darned close, but there appears to be some rounding differences. : I have 3 decimal points for my shares, and 4 for share prices, and dollar values
: only go to the $0.01. : My values for "End Shares", "Average Purchase Price (btw)", "Purchases (btw)",
: and "Redemptions (btw)" all match my number crunching, but the
: "Tax Basis AVG (end)" value is slightly different. : This should just be : "Purchases (btw)" - ("Redemptions (btw)" * "Average Purchase Price (btw)") : shouldn't it? Not sure why the differences. : Thanks,
: Daniel Hi Daniel, This figure (Tax Basis AVG (end)) is the cost basis, calculated using
the average cost method, for the shares owned on the ending report date.
The cost basis is the number of shares owned on this date times times the
average purchase price of all previously purchased shares, back to the
inception of the investment. If you have any account fees or return
of capital distributions this will also affect the basis. Account fees
will increase your cost basis, while return of dist. will decrease it. The custom report field "Average Purchase Price (btw)" only averages
the actual purchase price, not including commissions. The cost basis
calculation includes commissions in your basis, so the basis will be
slightly higher (by the amount of your commissions) than you will calculate
using this field alone and the ending number of shares. You can also
print out the "Commission Fees (btw)" to factor this in. Thanks,
Mark
--
Mark Beiley
Fund Manager for Windows 3.1x/95/98/NT
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