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CONCEPTS IN FED.TAX.,2020-W/ACCESS

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 50P

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Question

A pension scheme provides retirement benefits to a group of 200 pensioners currently
aged 65 exact. The scheme pays an annual income of £19,000 annually in arrears if
the pensioner is alive. A lump sum of £50,000 is paid at the end of the year of death.
During the first year 3 members died.
(i)
(ii)
Basis:
Calculate, showing all working, the mortality profit or loss for the year.
Explain why the mortality profit or loss has arisen.
Mortality:
Interest:
AM92 Ultimate
6% p.a. effective

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