Chris, I think the formula for income on page 468 is incorrect, and=20
adjfedtax should also be subtracted. Loosely speaking, the adjfedtax formul=
a=20
is applying a tax rate of 46% to the difference between New York specific=20
underwriting gain and the countrywide underwriting gain. Since the income=20
calculation is specific to New York, it seems to make sense to subtract thi=
s=20
additional tax too. I hope I am making sense here. Please let me know if=20
this is unclear.
Having looked back at old exam problems, I have yet to find one on this=20
subject. I suppose it is fair game, though.
----------
From: chrisheim@email.msn.com
To: studygroup8@lists.casact.org; Dan Perry
Subject: Williams
Date: Saturday, April 11, 1998 10:39AM
[[ FILE0001.HTM : 4104 in FILE0001.HTM ]]
There appears to be a typo in the appendix of Williams article on XS profit
statutes. The formula for INCOME(NY) makes no mention of ADJFEDTAX, but th=
e
example of the next page seems to subtract ADJFEDTAX
in calculating the INCOME(NY). Any idea which is correct? Any thoughts on
the probability that these formulas will be tested?
--TFS-with-MIME-and-DIME
Content-Type: text/html; name="FILE0001.HTM"
Content-transfer-encoding: base64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--TFS-with-MIME-and-DIME--