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Question

Bond Strategies

Answer 1

* Tax Swap: offset gains with losses * Barbells: Owning both ST & LT * Laddered Bds: Buying bonds with different maturities like ladder (escalera) * Bullets: Balloon pmt due @ sine date in the future usually 0-coupon bds, treasuries, & corporates are used

Answer 2

CV = _PAR_ x P_s CP CV Conversion Value P_s price of the common stock CP conversion price = PAR / # of Shares

Answer 3

Capitalized Value = _Net Operating Income (Calculating NOI)_ Capitalization Rate ***Calculating NOI*** Gross Rental Receipts + _Non-Rental income_ = Potential Gross Income - _Vacancy & Collection losses_ = Effective Gross Income - _Total Operating Expenses_ = Net Income + Interest Expense + _Depreciation Expense_ =NOI

Answer 4

Close-end: * Fixed initial market capitalization * Shares trade on an exchange * May trade @ a premium or discount to NAV Open-end * Unlimited initial market capitalization * Shares are bought & redeemed directly from fund family * Shares trade @ NAV Unit Investment Trust * Can be equity or fixed income * Self-liquidating * Passive management, no trading assets between the trust * Units, not shares

Answer 5

Understanding a put buyer (right to sell) when in the money means stocks price has fall then go to the market buy the stock and then sell it to the put writer (seller) at the agreed strike price wich is higher than the current stock price and make a profit.

Answer 6

Long Commodity -Short/Sell Contract (Ex. Farmer) Short Commodity - Long/Buy Contract (Ex. Manufacturer)

Answer 7

\> or = 0 Do the Investment \< 0 Not Do the Investment

Answer 8

When 2 items occur simultaneously: 1. You have an investment growing at 1 rate of return AND 2. Your have an expense growing @ a different rate of return Real Rate = [_( 1+ Nominal Rate)_ - 1] x 100 (1+ Inflation Rate)

Answer 9

1. Monthly TVM problem. Calculate PMT 2. The easiest way to know the balance for refinance is to enter the number of payments made already if they have paid 3 years would 36 INPUT SHIFT and AMORT. 3. USE THIS ONLY IF THE PROBLEMS SAYS DATE OF PURCHASE IN A MONTH OTHER THAN 01/01/xx. Depending on the purchase 1st month make entry # of PMTs in 1st year N. Hit = signs twice means interest payment for the period read calculator sceen to kno what is being displayed PRINC, INT, Oustanding Balance Year 1: 1 [INPUT] N, [Shift] [AMORT] [=] [=] Year 2: N+1 [INPUT] N+12, [Shift] [AMORT] [=] [=]

Answer 10

**DRAW TIMELINE** 1. Calculate NPV @ Time Period Zero. Using Real Rate of return calculation 0 CF₀ ; 0 CF_j (# number of years before end of savings or the period before the expense or need usually N-1) N-1 SHIFT N_j; Tuition cost or retirement income (if problem talks about Soc Sec always reduce by that amount also consider if benefits will be reduced for taking them early @ age 62) $# CF_j # of years of expense SHIFT N_j ; Real rate I/YR (Formula calculation) ; SHIFT NPV 1. Determine the savings requirement. Here pay attention if BEG or END Mode is needed. Use return on investment rate only. Solve for PMT using prior NPV result as PV, N= the saving period, I= investment return (NOT INFLATION RATE), and FV=0

Answer 11

Nondiscrimination Testing for 401(k) Plans Limits the employee elective deferrals for the HC based on the elective deferrals of the NHC. Remedies Corrective Distributions 1. Recharacterization (if used may affect ACP) 2. Qualified non-elective contributions (QNEC) to all eligible EEs, QNECs are 100% vested 3. Qualified matching contributions (QMC) to all NHC EEs participating in the plan & are 100% vested as well

Answer 12

Process of retitling assets Life insurance: if the deceased owned a policy in someone else the FMV of the policy is included in his probate estate if the deceased owned a policy on his life and the primary beneficiary died too w/o any contingent benef being named then the death benefit will transfer through probate as well

Answer 13

1. Received: FMV of property received + boot cash+mortgage relief 2. Given up: Basis of property given+cash paid 3. Amount Realized: Received - Given 4. Recognize gain up to boot received the rest of the gain if any is deferred 5. A/B if new asset = A/B of property given up + Cash paid (boot and/or closing costs) + gain recognized + liabilities assumed - cash received - liability relief - loss recognized Note: Losses are not recognized on like-kind exchanges. TCJA allows like-kind exchanges only on real estate business property

Answer 14

Call Penalty = Call Price (FV call) – Par Value (1k)

Answer 15

1. TVM calculation solving for PMT=? with original mortgage 2. Solve for PV=? using the reduced N for the refinance because the balance owed on a mortgage is always the present value of all of the remaining cash flows, PMT from step 1 3. Use the previous PV from step 2, lower interest rate, reduced N to solve for the reduced PMT=? 4. Multiply # of remainings periods N x each PMT the one from step 1 and the one from step 3, subtract each other the difference is the savings.

Answer 16

The IDGT is a technique for transferring business interests because it arranges a transfer of the business interest without gift tax and removes the business interest from the grantor's gross estate

Answer 17

Own occupation is the most adventageous for the employee in order to maintain its same level of income

Answer 18

When Client relies in the advisor advise (implied) meaning that engagement starts before even signing and engagement letter or contract

Answer 19

1. Deposit payable outside the US 2. Money market mutual fund 3. Stocks, bonds, mutual funds this is covered under SPIC

Answer 20

1. 5/9 for 1st 3 years = 20% 2. 5/12 for remaining max 2 yrs = 10% 3. That's the max for a FRA age 67 taken benef @ age 62 is 5 yrs or 30% \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 8% per yr

Answer 21

if 2 to 1 split Price Shares 1/2 \* price 2/1 \* shares

Answer 22

CV= σ (risk) / Average Return Less CV is better because is less risk/unit of return

Answer 23

Calculator Keys compounding frequency per year X Shift P/YR X rate Shift NOM% Shift EFF%

Answer 24

1. Select Variable (V) what they are asking for and Weight (W) magnitudes is the amount of $$$ invested per variable 2. V₁INPUT W₁Σ+ ; ...; Vn INPUT Wn Σ+ SHIFT 6

Answer 25

CY = Coupon PMT / Market price of the bd

Answer 26

Gross Profit % = _Realized Gain (SP-A/B)_ SP Principal PMTs rec'd times GP % is the gain for the period the rest is return of basis

Answer 27

1. PTPs (Publicly traded partnerships): Passive activity losses from a PTP generally may be used only to offset income or gain from passive activities of the same PTP 2. Passive activity losses are generally deducted in the year of disposition. Capital loss limits may apply to any loss on the sale. There are ordering rules. 3. Generally a limited partner is not @ risk for partnership debt that he guarantees. 4. If a loss is subject to passive activity rules, @ risk limits must be applied 1st. A loss may be deductible under the @ risk rules but be suspended under passive loss rules. 5. Taxpayers are @ risk for: $ contributed to the activity, amounts they borrow to use in the activity including their share of partnership debt if they are personaly liable for it or pledge collateral property to secure the loan.

Answer 28

An employee who receives NO contributions or forfeiture allocations in their employer's profit-sharing plan is not considered an active participant.

Answer 29

Employees only

Answer 30

1. Calculate the average for the 2 trading days before and after 2. Draw a timeline with the trading dates the values calculate and fill in the blanks following the sequence. see example in review book slide #41

Answer 31

Installment sale (usuallly used with family): If the seller dies before the term (end of payments) the remaining payments are included in Gross Estate (this is different from the GRATs, GRUTs, & QPRT were the value of the whole property would have been included in the GE) Private annuities: If seller dies before the term there is no inclusion of pending pmts in the GE & no gift tax. The income tax on the gain is recognized at sale. So Estate benef (reduction) but not income tax benef. This is or sick people but death it's not inmediate.

Answer 32

1. Public educational institution or charity 501(c)(3) 2. Assume no-Erisa plan unless told otherwise (loans or ER contributions cause Erisa regulation) 3. Catch-ups * age 50 & older $6k catch-up * if worked 15 yrs or + with ER (Health, Education or Religious) & unused deferrals then can make $3k/yr 4. Insurance annuities and mutual funds

Answer 33

Refers to key-EE vs. non key EE Must correct benefits to keep qualified status Key EE means control & ecisio making

Answer 34

401(k) 403(b) SIMPLE plans (SIMPLE IRA and SIMPLE 401(k) plans) SARSEP \_\_\_\_\_\_\_\_\_\_\_\_\_ THE 457 are the ones EXCLUDED SEPARATE LIMITS

Answer 35

1. Determine need for 1st year of education or retirement * N= time periods from now until the event starting date * I/yr= inflation rate of expense * PV= 1 yr cost or needed to fund the project * PMT= 0 * FV=? , represents the cost of the 1st year 2. Represents the lump sum needed at the beginning of the event to fund ALL years of education or retirement * BEGIN or END mode as needed * N= duration of education or retirement * I (real rate) considering the rate of investments and inflation in the calculation * PMT= FV₁from step one above * FV= 0 * PV= ? is the amount when the clients start the event to fund it all

Answer 36

1. January effect: This month ends to be better because of tax-loss selling at end-of-previous yr 2. Small firm effect: Small caps tend to outperform large caps 3. Value line effect: 4. P/E effect: Low P/E stocks tend to outperform high P/E stocks **Market anomalies do not support the EMH in any of the 3 forms**

Answer 37

Rising interest rates mean investors can get a larger stream of CFs (higher coupon) on new bonds. Current bondholders selling bonds must do so at a discount. This makes their bond competitive with the new issue from the corporation. A drop in market interest rates means coupon rates in new bonds will be lower than previous bond issues making then old bonds worth a premium. Investors buying these higher coupon bonds (a large stream of CFs) must pay a premium above par value. Interest rate changes in the marketplace do not affect the coupon rates pmts.

Answer 38

IRA because they generate phantom income that will be tax-deferred inside an IRA

Answer 39

## Footnote If there is a qualified disposition of ISO ER doesn't get a deduction. An ER gets deduction every time there is W-2 income An ISO cashless exercise it's ALWAYS a disqualified disposition the benefit it's that EE doesn't pay FICA taxes

Answer 40

@ receive of the restricted stock executive will generally not recognize any taxable income (except if section 83(b) election selected\*) because restriction usually creates a substantial risk of forfeiture. The employer won't have a deductible expense. When the risk of forfeiture is eliminated the executive recognizes W-2 income = to the value of the stock@ that date and becomes his basis, & the employer will have a tax-deductible expense for and = amount. \*Sect 83(b) the executive has w-2 income @ the time of transfer (instead of the end of forfeiture)

Answer 41

* Intended to benefit a large portion of employees (plan can't be discriminatory) * The employee is able to purchase the employer stock for a price = to no less than 85% od a date determined stock price. * Only can buy $25k/yr * ***Qualifying disposition:*** Discount portion is subject to ordinary income NO FICA Taxes. Any gain in excess of the ordinary income portion will be LTCG. * ***Disqualifying disposition:*** The difference is that gain attributable to the discount will be W-2 income with FICA taxes.

Answer 42

* Each shareholder owns a policy on all of the other owners. Then the estate of each owner then commits to selling the ownership to the surviving owners. * Premiums are nondeductible * Life insurance cannot be attached by the company's creditors * Remaining shareholder's purchase deceased owner's interest * Tax-free death benefit to the remaining owners * Step-up basis of remaining owner's interest ## Footnote ***Advantages:*** The cross-purchase agreement allows for a step-up in the remaining shareholder's basis and the life insurance cannot be attached by the company's creditors. ***Disadvantages:*** The cross-purchase agreement becomes inefficient with more than 2-3 owners. The formula to determine the # of policies is N\*(N-1)

Answer 43

* Company owns a policy on each owner. The estate of each owner then commits to selling their ownership back to the company. * Premiums are nondeductible * Life insurance can be attached by the company's creditor's * The company purchases the deceased owner's interest * Tax-free death benefit to the company * NO step-up basis of remaining owner's interest * Does not allow for altering of ownership ratios ## Footnote ***Advantages:*** Better if there are several owners, Younger owners will be relieved of paying high premiums for older owners. ***Disadvantages:*** Subject to the firm's creditors and owner don't get step-up basis

Answer 44

* Permits (but doesn't require) Nontaxable treatment of gains if the amount is reinvested in the replacement property = or exceeds the amount realized * Replacements property must be: * similar function or use * acquired within 2 yrs from the 12/31st of year that gain is realized or 3 yrs from the condemnation of realty

Answer 45

Net unearned income does not include: * Standard deduction $1,100 for unearned income * Next $1,100 of income is taxed @ child's marginal rate * Therefore the kiddie tax won't apply unless unearned income is greater than $2,200

Answer 46

1. An activity consideredto be entertainment , amusement or recreation 2. Membership dues to any club organized for business, pleasure, recreation, or other social purpose or 3. A facility or portion thereof used in connection with any of the above items

Answer 47

**Meals:** Exclude form gross income if: in-kind no cash, furnished for the convenience or the ER & on the ER business premises. Deduction limit 50%. **Lodgin:** Exclude form gross income if ALL 3 conditions apply: furnished on ER's premises, convenience of ER, the EE is required to accept the lodging as condition of employment. **Atlhetic facilities furnished by ER:** To exclude from gross income MUST qualify as "on premises facility": operated by ER, located on premises owned or leasedby the E, and all of the use is by EE and their family only. **Educational Assistance Programs:** To be considered qualified the plan mut be a written do, not need to be funded, the gross inc exclusion is $5,250/yr. Non-discrimination requirements apply.

Answer 48

**Dependent Care Assistance:** Non-discrimination requirements apply. Up to $5k/yr ($2,500 forMFS). **No-Additional-Cost Services:** Non-discrimination requirements apply. To exclude form gross income the ER can't incur any substantial additional cost or lose revenue. The service must be offered to customers in the ordinary course of business in which the EE performs substantial services. Ex: free airline, bus, or train tickets, and hotel accomodations or telephone services. **Qualified EE discounts:** Non-discrimination requirements apply. Only 20% discount is allowed, multiplico por lo q lo vendo a costumers x 20% si esa cantidad es mayor q el discount q di no inclur in gross income si es al reves then the excess is included in gross income of the EE. **Working conditions fringe benefits:** Ex provision of a company car. **"De Minimis" fringe benefits:** It's so small in value that that it makes accounting for it unreasonable or administratively impracticable. Ex: typing personal letters, using coptying msachine if @ least 85% used for business, holiday gifts no cash , coffee, donuts, or drinks, local telphone calls, flowers, fruits, books. **Qualified moving expenses:** Deduction suspended unless military. ER may still reimburse such moves but the reimbursement will be taxable income to the EE.

Answer 49

**Qualified transportation & parking:** $265 limits **Adoption assistance program:** $14,080 limitincome phaseout applies. Non-discrimination requirements apply. **Qualified tuition deduction:** Non-discrimination requirements apply. Usually for non-graduated level. Provided to current or former EEs who retired or left on disability , widower , depedents, spouses.

Answer 50

**Awards & Prizes:** Non-discrimination requirements apply for qualified plans and the limits is $400/EE. Esto no se entiende bien buske en Checkpoint below. Gross income does not include amounts received as prizes and awards made primarily in recognition of religious, charitable, scientific, educational, artistic, literary, or civic achievement, but only if (1) the recipient was selected without any action on his part to enter the contest or proceeding; (2) the recipient is not required to render substantial future services as a condition to receiving the prize or award; and (3) the prize or award is transferred by the payor to a governmental unit or organization described in paragraph (1) or (2) of section 170(c) pursuant to a designation made by the recipient.

Answer 51

**Cafeteria Plans:** Written plan under which an EE may choose to receive cash as compensation or tax free fringe benefits. If the plan meets requirements is deductible business exp to ER and not gross inc to EE. Non-discrimination rules apply. **FSAs:** Is a cafeteria plan that is funded by EE deferrals rather than ER contributions. They are use it or lose it although they have a grace period. Salary reductions avoid federal and payroll taxes. Non-discrimination rules apply.

Answer 52

Las q tienen Tax en el name no pmt is needed before District in the name means a jury trial

Answer 53

**Funding arrangements:** Unfunded, Rabbi (Could be a long term retirement plan) & Secular trusts (Not a long term retirement plan + used for projects that have vesting schedule). **Types:** * Salary reduction * Salary continuation(after retirement) * Supplemental Executive Retirement Plans * A Supplemental Executive Retirement Plan (SERP): Supplements the pension plan without regard to limits imposed upon salary levels (i.e., maximum salary of $280,000 in 2019) or the maximum funding levels of Section 415. * A funded deferred compensation plan. * An excess benefit plan: Extends the benefits of a company's qualified plan above the Section 415 limits but still adheres to maximum salary limitations. * An unfunded deferred compensation plan. * ISOs, NQSO, ESPP, restricted stock options, stock appreciation rights

Answer 54

A defective grantor trust is treated as a grantor trust for income tax purposes but as a completed gift for gift and estate tax purposes.

Answer 55

The maximum disparity using the excess method is the lesser of the formula amount (# years of service × 1.5% rate f contrib) or 26.25% Note: This level of knowledge is probably not tested on a regular basis, however, because it is part of the board’s topic list this question was added to ensure that you could answer it if it came up on the test.

Answer 56

* ER Matching Contributions is $1 x $1 up to 3% of compensation ($280k annual limit doesn't apply) * ER Non-elective contribution 2% to all EE ($280k limit applies)

Answer 57

marketing and ditribution costs

Answer 58

Note: It’s better to have a bond portfolio with a weighted duration that matches my time period (ladder) than having only one bond. Always pick the duration that is a little less than the period I need.

Answer 59

+important items are highlighted in form 6251 Adjustments can be + or - Preference items are always + Deferral items affect + than 1 yr TCJA repealed AMT for C-Corps **Any tax item that increases the regular tax is correct for minimizing the AMT.**

Answer 60

1. Aggressive Growth 2. Growth 3. Growth & Income 4. Value Funds 5. Balanced Funds 6. Bond FUnd 7. Money Market Funds 8. Index Funds 9. Sector Funds 10. Asset Allocation Funds or Lifecycle Funds 11. Global Funds\*: US & International 12. International\*\*: Only International not US

Answer 61

Except as otherwise provided, the governing instrument may permit a qualified personal residence trust to hold the following assets (in addition to the residence) in the amounts and in the manner described in this paragraph (c)(5)(ii): (A) Additions of cash for payment of expenses, etc. (1) Additions. The governing instrument may permit additions of cash to the trust, and may permit the trust to hold additions of cash in a separate account, in an amount which, when added to the cash already held in the account for such purposes, does not exceed the amount required: (i) For payment of trust expenses (including mortgage payments) already incurred or reasonably expected to be paid by the trust within six months from the date the addition is made; (ii) For improvements to the residence to be paid by the trust within six months from the date the addition is made; and (iii) For purchase by the trust of the initial residence, within three months of the date the trust is created, provided that no addition may be made for this purpose, and the trust may not hold any such addition unless the trustee has previously entered into a contract to purchase that residence; and **(iv) For purchase by the trust of a residence to replace another residence, within three months of the date the addition is made, provided that no addition may be made for this purpose, and the trust may not hold any such addition unless the trustee has previously entered into a contract to purchase that residence.** **Sale proceeds. The governing instrument may permit the sale of the residence (except as set forth in paragraph (c)(9) of this section) and may permit the trust to hold proceeds from the sale of the residence, in a separate account.** **The governing instrument must prohibit the trust from selling or transferring the residence, directly or indirectly, to the grantor, the grantor's spouse, or an entity controlled by the grantor or the grantor's spouse during the retained term interest of the trust, or at any time after the retained term interest that the trust is a grantor trust.** **Example (6).** T transfers T's personal residence to a trust that meets the requirements of a qualified personal residence trust, retaining the right to use the residence for 12 years. On the date the residence is transferred to the trust, the fair market value of the residence is $100,000. After 6 years, the trustee sells the residence, receiving net proceeds of $250,000, and invests the proceeds of sale in common stock. After an additional eighteen months, the common stock has paid $15,000 in dividends and has a fair market value of $260,000. On that date, **the trustee purchases a new residence for $200,000. On the purchase of the new residence, the trust ceases to be a qualified personal residence trust with respect to any amount not reinvested in the new residence.** The governing instrument of the trust provides that the trustee, in the trustee's sole discretion, may elect either to distribute the excess proceeds or to convert the proceeds into a qualified annuity interest.

Answer 62

A CRAT with only surviving spouse as income beneficiary qualifies for the unlimited marital deduction and it's included in the surviving spouse GE @ death and deducted as charitable deduction

Answer 63

* Fee-only * Fee-based: fee+ commission sale-related * Even when you sold commission poducts long time ago and on't do it anymore if you still receive any kind of trail comp from them you are fee-based * If your main firm is related to a commision firm our will be fee-based

Answer 64

1. Name, CFP® 2. Name CERTIFIED FINANCIAL PLANNER™ 3. Can’t use CFP® marks in an email address, license plates, or website URL

Answer 65

SHIFT key then DISP and the # of places I want usually 4

Answer 66

for federal employees and members of the uniformed services like 401(k)

Answer 67

Coverage Requirements ## Footnote age 21 performance of services o 3 out of 5 years rec'd compensation of @ least $600 during the year **based on above even part-time EEs must be covered but if the firm has high turnover the SEP may be used to exclude EEs that won't remain for 3 yrs**

Answer 68

ER is not required to meet ADP/ACP or top-heavy tests (PAY ATTENTION TO THIS IN A PROBLEM) The election must be made 60 days prior to the beginning of plan yr Minimum contributions require are 100% vested either: 3% non-elective or matching (match 100% up to 3% and 50% from 3-5%) \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Automatic enrollment or negative election if this is implemented there is no need for ADP, ACP or top-heavy tests. Negative election doesn't require 100% immediate vesting.

Answer 69

Material changes and updates to public disciplinary history or bankruptcy info must be disclosed to clients within 90 calendar days If you have 2nd or + offense report even if not convicted Report adverse conduct within 30 calendar days charged or convicted

Answer 70

* **Covered Call:** Sell calls on stock currently owned by the investor * **Married Put:** Buying a put option on stock currently own by the investor. Also called portfolio insurance when the investor owns a diversified portfolio. ## Footnote **Stradles** * ***_Long Straddle:_*** An investor buys a put and a call option on the same stock. The investor expects volatility but is unsure as to the direction. * ***_Short Straddle:_*** An investor sells a put and a call option on the same stock. The investor DOESN'T expects volatility and wants to keep the premiums. **Collar:** A strategy when the investor owns the stock but wants to protect the downside risk w/o paying the entire cost of he put option.

Answer 71

Medicaid Penalty Calculation (for nursing homes) = Amount of $ gifted or transferred\* in the 60 months (5 yrs) prior to application / Cost of the nursing home \*Transfers to family members for disability may be penalty exempt

Answer 72

* Understanding Responses Associated with Active Listening * Continuing: Nonverbaly (nod, uhh Huu) to t client continue talking * Restatement of content: Let the speaker heard what they have said. * Reflection of feeling: You feel\_\_\_\_because\_\_\_\_ * Clarifying * Summarizing * Leading Responses * Leading: Advisor takes the lead * Explanatory * Interpretive: Could be risky at the beginning of the relationship * Reassuring: Encouragement, make the client feel better * Suggestive: Giving advice * Questions should be OPEN-ENDED * Ineffective questions: CLOSE-ENDED (Yes/No, I Do, etc.), TRUE/FALSE, WHY (connotation of implied disapproval), Question Bombardment (doing 2, 3 4 questions at the same time w/o waiting for a response)

Answer 73

Equity = FMV (stock) - Loan $ Margin Call (how much $ the investor needs to add when stock price fall) = LOAN - [FMV \* ( 1 - MMR)] Federal Reserves sets margin's rates

Answer 74

Divide the basis point by 100 and you get % Ex. 500 basis points mean 5% Basis Points Percentage Terms 1 0.01% 10 0.1% 50 0.5% 100 1% 1,000 10% 10,000 100%

Answer 75

* Taxable account: Investments that generate LTCG and qualified dividends, Equity (stocks), tax-exempt * IRA: Ordinary income property like REITs, Fixed-income investments: high yield bonds and funds which pay interest, STCP, mutual funds because they regularly pay capital gain distributions

Answer 76

For charitable itemized deductions el % se le aplica al AGI y luego se compara el resultado con FMV or A/B depending to the rule

Answer 77

The $15,000 annual exclusion is not available for bequests

Answer 78

A prospectus will disclose expenses such as administrative or management fees associated with a variable annuity or mutual fund

Answer 79

**Price \* int rate** then use this result to multiply the next yr and go on the **difference** on the amount calculated from one yr to the other is the imputed interest

All Flashcards

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