Feld: CTI for P&C Companies Paper - Indirect Method
I know this has probably been brought up before but I didn't want to go rooting around for a thread that might have it. So, I'll just make it quick and ask again. In Feldblum's paper on Computing Taxable Income for P&C Companies. Is his formula on Pgs 4-5 for the indirect method of calculating RTI incorrect? Shouldn't he be adding tax exempt investment income? I thought that was incorrect but took the papers word for it and have now seen solutions to past problems multiple times where it adds the tax exempt investment income? Can someone let me know? Thanks a lot.