Question on Handout 3

Hello Folks,

There has been some confusion about the Income Statement Gain/Loss Comparison
table on page 4 of Handout 3. This table is correct as given and reflects
income statement gains and losses due to changes in market value only. This
table does not include income due to interest payments or dividends
received. As you recall, market value changes for trading securities flow
through the income statement while gains and losses for available for sale
and held to maturity securities only affect income when they are sold.

Michelle Wood
mwood@haas.berkeley.edu

- att1.htm