Problem for BEAT
Why TBIL in the problem is 80? I know TBIL = PL + chg(discounted losses) = incurred loss - chg(discount amount)
Could you please let me know how base erosion payment and expenses related to the formula above?
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Why TBIL in the problem is 80? I know TBIL = PL + chg(discounted losses) = incurred loss - chg(discount amount)
Could you please let me know how base erosion payment and expenses related to the formula above?
Comments
TBIL is given to be zero in the problem. Odomirok throws in two extra items that were not mentioned in the formulas: (general and administrative) expense, and base erosion payment. The sum of these two items is 80. Odomirok implies in the text and in the problem that Tax-Basis Earned Premium should also be reduced by these two items to get Tax-Basis Income (TBI).
The TBI formulas were created based on an earlier version of Odomirok, before this problem was added. We ask that you be flexible in interpreting the formulas in the face of these new additions.
Thx. Could you please point out where in Odomirok I can find the information you mentioned about TBEP? Thank you very much for your time.
See paragraphs 1 and 2 of p630, and the problem example in Odomirok. Sure, good luck.
Hi, Odomirok has only 502 pages posted in the study syllabus. Could you please let me know which part in section 26 those paragraphs are located?
Sorry, they're on page 360 of Odomirok.