[Anonymous]

In the Ninja notes, it says for the second year recapture, it is

3rd year – 2nd year – $15,000

I came across a Wiley problem and in the solution, it says the second year recapture is

2nd year – 3rd year -15,000

I am just wondering, which is correct?

[TargetCPA]

Alimony Recapture Formula:

R3 = R1 + R2

R2 = P2 – (P3 + 15,000)

R1 = P1 – [ (P2 – R2 + P3)/2 + 15,000]

Shortcut for Year 3 Recapture = P1 + P2 – 2P3 – 37,500

[TargetCPA]

Alimony Recapture Formula:

R3 = R1 + R2

R2 = P2 – (P3 + 15,000)

R1 = P1 – [ (P2 – R2 + P3)/2 + 15,000]

Shortcut for Year 3 Recapture = P1 + P2 – 2P3 – 37,500

[Author]

Replies