Or. Admin. R. 150-317-0310 - Bad Debt Reserve of Financial Institutions Not Qualifying as Large Banks that Have Differences in Reserve for Federal and Oregon Tax Purposes
Current through Register Vol. 61, No. 4, April 1, 2022
Example: Small Bank, Inc., must calculate its 1991 addition to its reserve for bad debts based on the following information:
Federal reserve balance, 12/31/87-$600
Oregon reserve balance, 12/31/87-$400
Bad debts charged against Oregon and federal reserves during 1991-$500
Federal reserve balance, 12/31/91-$300
Oregon reserve balance, 12/31/91-$200
Total bad debts, after recoveries, sustained in current and 5 preceding years-$2,500
Outstanding loans, 12/31/87-$150,000
Outstanding loans, 12/31/91-$180,000
Sum of loans outstanding at end of current and 5 preceding years-$960,000
Using the experience method, the addition to the reserves for bad debts for 1991 is computed as follows:
The addition to reserve for bad debts is the amount necessary to increase the balance of the reserve (at the close of the current year) to the greater of: [Table not included. See ED. NOTE.]
Publications: The publication(s) referred to or incorporated by reference in this rule is available from the Department of Revenue pursuant to ORS 183.360(2) and ORS 183.355(6).
Stat. Auth.: ORS 305.100
Stats. Implemented: ORS 317.259
The following state regulations pages link to this page.
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.