Q14

zachboazzachboaz
in Practice Exam 1

Here, for the Adjusted IRIS 7 only surplus aid from the CY is removed & nothing is done about surplus aid from CY-1, is this only because we can't calculate surplus aid from CY-1 (not giving UEP for CY-1)?

In Spring 2014 #19, when recalculating IRIS 7 due to an unusual IRIS 4, Surplus Aid from both CY & CY-1 is removed.

Comments

  • grahamgraham

    Yes, the previous year's surplus aid should also be removed if it's available. In this problem you could not calculate it so you could not remove it. Here's the excerpt from the IRIS text:

    It might be a good idea to mention in your answer that this should be done even if the problem doesn't provide enough information.

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