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You are bearish on Bark River Machine and Tool Company. You establish a margin account...

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Accounting

You are bearish on Bark River Machine and Tool Company. You establish a margin account with your broker. You sell short two round lots (200 shares) for $63.12 per share, January 1st, depositing the proceeds in an escrow account that earns interest. On December 1st, a dividend of $1.61 per share was paid. On December 31st, you covered the short sale by buying the stock for the price of $61.94. You paid $0.20 per share in commissions for each transaction and earned 1% interest on your margin account.
\table[[Bark River Machine and Tool Company],[Market Price, January 1,$63.12,],[Dividend, December 1,$1.61,],[Market Price, December 31,$61.94,]]
\table[[Broker],[Commission, per Share,$0.20
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