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

question 105

Multiple Choice

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

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

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Definitions:

Exosystem

A component of Bronfenbrenner's ecological systems theory, referring to external environments that indirectly influence the individual, such as parents' workplaces or the neighborhood's social conditions.

Chronosystem

In ecological systems theory, it refers to the patterning of environmental events and transitions over the life course, as well as socio-historical circumstances that affect an individual's development.

Environmental Events

Occurrences within the natural or built environment that can influence individuals' behaviors, health, and development.

Sociohistorical Circumstances

The social and historical context or background that influences an individual's life or a community.