2012.Fall - Revision history

Graham at 14:30, 2 May 2020

2020-05-02T14:30:03Z

Graham at 14:29, 2 May 2020

2020-05-02T14:29:41Z

Graham at 14:29, 2 May 2020

2020-05-02T14:29:30Z

Graham at 14:29, 2 May 2020

2020-05-02T14:29:13Z

Graham: Created page with "The solution to this problem requires a formula for '''pre-paid expenses''' as the sum of the following quantities: * commissions and brokerage expenses incurred (column 23)..."

2020-05-02T14:27:19Z

Created page with "The solution to this problem requires a formula for '''pre-paid expenses''' as the sum of the following quantities: * commissions and brokerage expenses incurred (column 23)..."

New page

The solution to this problem requires a formula for '''pre-paid expenses''' as the sum of the following quantities:

* commissions and brokerage expenses incurred (column 23)
* taxes,licenses and fees incurred (column 25)
* other acquisition, field supervisions and collection expenses incurred (column 27)
* and half of the general expenses incurred (50% of column 29)

But this formula is not actually provided in the source text. '''Pre-paid expenses''' for a particular line of business ''(versus for all lines of business combined)'' is an allocation calculated with this formula as given in the main wiki article ''[[https://www.battleacts6us.ca/wiki6us/Odomirok.18-IEE#Investment_Gain_Part_-_2 | here]]'':

::{| class="wikitable"
|-
| '''Formula 2a''':    (PPE for UEP)A    =    PPERA    x    m(UEPA)
|}

Now, the text does give a formula for '''net acquisition expense''' at the bottom of page 221 as the sum of:
* commissions and brokerage expenses incurred (column 23)
* taxes,licenses and fees incurred (column 25)
* other acquisition, field supervisions and collection expenses incurred (column 27)
* and half of the general expenses incurred (50% of column 29)

This is the same formula as above but applied to all lines of business combined instead of just a particular line. To apply the formula to a particular line, you have to make the assumption that the pre-paid expense can be calculated as a sum in the same way as net acquisition expense. But I'm not sure you would ever do it that way because pre-paid expenses are supposed to be calculated as an allocation.

So all in all, I think it was a bit of a contrived problem. ''(shout-out to SK!)''

@@ Line 6: / Line 6: @@
 * and half of the general expenses incurred (50% of column 29)
-But this formula is not actually provided in the source text. '''Pre-paid expenses''' for a particular line of business ''(versus for all lines of business combined)'' is an allocation calculated with this formula: ''(see also ''[[Odomirok.18-IEE#Investment_Gain_Part_-_2 | here]])''
+But this formula is not actually provided in the source text. '''Pre-paid expenses''' for a particular line of business ''(versus for all lines of business combined)'' is an allocation calculated with this formula: ''(see also [[Odomirok.18-IEE#Investment_Gain_Part_-_2 | here]])''
 ::{| class="wikitable"

@@ Line 6: / Line 6: @@
 * and half of the general expenses incurred (50% of column 29)
-But this formula is not actually provided in the source text. '''Pre-paid expenses''' for a particular line of business ''(versus for all lines of business combined)'' is an allocation calculated with this formula: ''(see also ''[[Odomirok.18-IEE#Investment_Gain_Part_-_2 | here]]''
+But this formula is not actually provided in the source text. '''Pre-paid expenses''' for a particular line of business ''(versus for all lines of business combined)'' is an allocation calculated with this formula: ''(see also ''[[Odomirok.18-IEE#Investment_Gain_Part_-_2 | here]])''
 ::{| class="wikitable"

@@ Line 6: / Line 6: @@
 * and half of the general expenses incurred (50% of column 29)
-But this formula is not actually provided in the source text. '''Pre-paid expenses''' for a particular line of business ''(versus for all lines of business combined)'' is an allocation calculated with this formula: ''(see also ''[[https://www.battleacts6us.ca/wiki6us/Odomirok.18-IEE#Investment_Gain_Part_-_2 | here]]''
+But this formula is not actually provided in the source text. '''Pre-paid expenses''' for a particular line of business ''(versus for all lines of business combined)'' is an allocation calculated with this formula: ''(see also ''[[Odomirok.18-IEE#Investment_Gain_Part_-_2 | here]]''
 ::{| class="wikitable"