or (e)(4)(C)) (hereafter in this subsection referred to as the SLDO assets ). (B) Except as provided in subparagraph (K)— (i) in the case of the first year in which a taxpayer becomes subject to this subsection and so has assets in the SLDO account, the notional interest percentage of the SLDO account shall be 25 percent (0 percent in the case of a taxpayer which elects to recognize all unrealized gains of all assets in the SLDO account upon initiation of the SLDO account), and (ii) at the end of the first year in which a taxpayer becomes subject to this subsection and so has assets in the SLDO account and at the end of each subsequent year during which the taxpayer continues to be subject to this subsection and have assets in the SLDO account, the notional interest percentage of the SLDO account shall be increased annually by an amount equal to the product of— (I) the deemed rate of return multiplied by 25 percent, multiplied by (II) 1 minus the notional interest percentage immediately prior to the increase. (C) The deemed rate of return for purposes of subparagraph (B)(ii)(I) shall be the estimated investment rate of return for the entire economy as determined by the Secretary, or if the Secretary provides that the notional interest percentage should be determined separately with respect to any class of assets, such other rate of return as the Secretary determines appropriate for such asset class. (D) Any sale, or other transfer, of any SLDO asset shall be treated as a distribution from the SLDO account, except that the Secretary shall provide rules for treating transfers made in the ordinary course of a trade or business and exchanges of non-readily tradable assets as other than distributions. (E) Except as otherwise provided by the Secretary, an increase in debt shall be treated as a distribution from the SLDO account and any subsequent decrease in debt shall be taken into account as a reduction in distributions from the SLDO account or as a credit against tax (as the Secretary determines appropriate). (F)