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NAV Accounting or Value Per Share Accounting

I have searched TMF FAQs and this board prior to asking
the following questions.  I did not find the answer to 
these questions, so please excuse me if these have 
already been answered on this board.

Should interest payments and dividends be added at each 
time step on a cumulative basis?

For example: 
		    		Div/Int 	Equity
Starting Balance       0.00  		1,000.00
1/1/2000               1.00 		1,001.00
2/1/2000               5.00 		1,006.00

On 2-1-2000 we were paid $4 in dividends.  In attempting 
to keep equity correct, so that NAV will be correct, I am
calculating a running cumulative total for dividends and 

Is this correct?

How do we treat margin in using NAV accounting?

The amount borrowed does not show up in either NAV or units, 
but the increase or decrease in the underlying equity can be
treated as either a gain or a loss in dividends or interest?
The change will affect NAV and not the units.

Is this correct?
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