SECTION 6. EXAMPLES

.01 Example 1. (1) On December 1, for the taxpayer’s single pool of credit card receivables, the Beginning SRPM is $100,000,000, and the Beginning OID is $1,000,000. During December, the taxpayer receives SRPM payments of $11,000,000 with respect to the pool.

(2) For December, the taxpayer computes Monthly OID for the pool in the amount of $110,000 ($1,000,000 ($11,000,000 / $100,000,000)).

.02 Example 2. The facts are the same as in Example 1. In addition, during December, credit card activity, charges, and fees relating to the pool add $14,000,000 to the SRPM and $300,000 to the unaccrued OID, and the taxpayer writes off credit card accounts whose aggregate balance at the beginning of December is $50,000. The taxpayer de

termines that the unaccrued OID attributable to the written-off accounts is $500 ($1,000,000 - ($50,000 / $100,000,000)). As a result, on January 1, the Beginning SRPM is $102,950,000 ($100,000,000 $11,000,000 + $14,000,000 - $50,000), and the Beginning OID is $1,189,500 ($1,000,000 - $110,000 + $300,000 $500).