Which Transaction Affects the Other Adjustments Account on an S

question 47

Multiple Choice

Which transaction affects the Other Adjustments Account on an S corporation's Schedule M-2?

• A)Payroll penalty.
• B)Unreasonable compensation.
• C)Life insurance proceeds (nontaxable to the recipient S corporation).
• D)Taxable interest.
• E)None of the above affects the OAA.

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Definitions:

Board of Directors

A group of individuals elected to represent shareholders and make key decisions regarding the company's management and policy.

Dividend Yield

Dividend yield is a financial metric indicating the annual dividend payout of a company as a percentage of its share price.

Earnings per Share

A financial metric that calculates the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company's profitability.