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

question 5

Multiple Choice

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

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

---

Definitions:

New Dress Code

Updated standards and guidelines set by an organization for what is considered appropriate workplace attire.

Horizontal Hypermobility

The frequent geographical movement or relocation of individuals, typically for work reasons, across similar levels of socioeconomic status.

Lateral Job-Changes

Movements or transfers to different positions at the same level of hierarchy within an organization, often to gain broader experience.