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:

Association

A statistical relationship between two or more variables.

Age Group

A division of populations based on age, used in statistical analysis to compare different demographic segments.

Frequency

The rate at which a repeated event happens in a given unit of time or space.

Null Hypothesis

a statistical hypothesis that assumes no effect or no difference between phenomena or populations.