1st Report Date = B * (R + 1/4Y)
2nd Report Date = B * (R + 1/2Y)
3rd Report Date = B * (R + 3/4Y)
Example. Bank X is a large bank within the meaning of § 1.585-5(b)(1)(i) . Bank Y is not a large bank under § 1.585-5(b) , and it maintains a bad debt reserve under section 585. In 1988, X purchases all of the stock of Y. If the acquisition causes Y to become a member of a parent-subsidiary controlled group described in § 1.585-5(b)(1)(ii) , Y is a large bank beginning in its first taxable year that ends after the date of the acquisition. Pursuant to § 1.585-5(d)(1) , this year is Y's disqualification year. Y must change in this year to the specific charge-off method of accounting for bad debts, in accordance with § 1.585-6 or § 1.585-7 .
26 C.F.R. §1.585-5