If an S Corporation's Beginning Balance in OAA Is Zero

question 97

Multiple Choice

If an S corporation's beginning balance in OAA is zero, and the following transactions occur, what is the ending OAA balance? $$\begin{array} { l r } \text { Depreciation recapture income } & \$ 21,000 \\\text { Payroll tax penalty } & 4,200 \\\text { Tax-exempt interest income } & 5,300 \\\text { Nontaxable life insurance proceeds } & 5,100 \\\text { Life insurance premiums paid (nondeductible) } & 2,800\end{array}$$ ?

• A)$1,300
• B)$7,600
• C)$23,300
• D)$27,500
• E)None of the above

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Definitions:

Cognitive Therapy

A form of psychotherapy that emphasizes the importance of thought patterns in influencing behavior and emotions.

Systematic Desensitization

A therapeutic technique used to gradually reduce phobia or anxiety through controlled exposure to the fear-inducing object or situation, combined with relaxation exercises.

Incapacitated

Describes a state where an individual is unable to act or respond due to injury, illness, or other impediments.

Psychoanalysis

A therapeutic approach developed by Freud that aims to explore unconscious motivations and conflicts through techniques like free association and dream interpretation.