2014 EA2F Farber Manual Q9

I'm a little confused by the end of year valuation: It seems the method to determine FT and TNC is the same as for a beginning of year valuation. So what's the point of using a valuation date of 12/31 except to use the actual 2008 salary? I'm particularly confused by the FT as of 12/31/2008: Why is the PV determined as of 1/1/2008?



Thank you!

2014 EA2F Farber Manual Q9