Please Help!
Our club has 22 members. It was voted to distribute the 2000 shares of
Cisco to the current club members using July 31, 2002 price. The cost
basis is $3220. The club agrees on the share amount to be distributed to
each member.
How do we distribute the decrease in club assets to the club members?
We use last day of month valuation.
Will the price of Cisco in the month a member joined be the determining
factor?
Or should the percent of assest a member owns on July 31 be used to
determine their portion of asset reduction?
e.g. member owns 4.5% of club assests and 483.463407 units on July 31.
.045 x $3220 (Cisco cost) = $144.90
Unit value on July 31 = 19.907605
$144.90/19.907605 = 7.278625 units
483.463407 units -7.278625 units = 476.184782 units
Thanks for any advice.
Rosemary B.
New Treasurer of KPW Investment Club
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