mcarthur724
Member
41) Gross incomes for previous 3 years , outsoursing commisions for previous 3 years, and profit from equity sale in last year are given. What is the ORC(BIA). The problem is there is no answer if we use only gross income data. So we should use another data somehow. Pls explain.
For this question I just took average of Gross Income for the 3 years and ignored all of the other additional expenses that they gave because BIA just uses Gross Income. However, the part I wasn't sure of was how to deal with the negative Gross Income in year one. First I tried to exclude the negative year 1 GI and just take the average of the positive years 2 & 3, however there was no answer choice for this. So then I included the negative year 1 in the 3 year average for GI, multiplied that by 15%, and there was an answer choice for this so I went with it. Does anyone know if this is the appropriate handling of a negative GI in a year?
For this question I just took average of Gross Income for the 3 years and ignored all of the other additional expenses that they gave because BIA just uses Gross Income. However, the part I wasn't sure of was how to deal with the negative Gross Income in year one. First I tried to exclude the negative year 1 GI and just take the average of the positive years 2 & 3, however there was no answer choice for this. So then I included the negative year 1 in the 3 year average for GI, multiplied that by 15%, and there was an answer choice for this so I went with it. Does anyone know if this is the appropriate handling of a negative GI in a year?