2019 Spring #9
In the wiki, net investment income earned = (Interest and Dividends received on investment assets held over the course of the year). In the solution to this problem for part b, net investment income earned is gross investment income - investment expenses incurred. The solution to the problem makes sense to me-I just don't understand why in the wiki, it wouldn't include to deduct expenses from interest and dividends earned, if it says it is "net". To me, the definition in the wiki for "net investment income earned" reads like gross investment income-what about that formula makes it "net" of anything?
Comments
I think the table you're referring to in the wiki is here:
This description of net investment income earned comes directly from the Odomirok text in the first sentence of the paragraph (shown below). But the last sentence does indeed clarify that the amount is net of expenses. I've added a note to the table in the wiki. Thank you for pointing this out.