For Neulbax (presenting 2025 and 2024), the new policy would have increased equity by 45,000 for years before 2024 and 2024 profit by 9,000 (tax effect ignored). Compute the adjustment to equity at 1 January 2024 and the total equity difference at 1 January 2025 between the two policies.
- Effect of years before 2024
- 45,000
- Effect on 2024
- 9,000