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If the Beginning Balance in OAA Is Zero and the Following

question 92

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If the beginning balance in OAA is zero and the following transactions occur, what is the ending OAA balance?  Depreciation recapture income $21,000 Payroll tax penalty 4,200 Tax-exempt interest 5,700 Nontaxable life insurance proceeds 3,900 Insurance premiums paid (nondeductible)  2,900 Charitable contributions17,000\begin{array}{lc}\text { Depreciation recapture income } & \$ 21,000 \\\text { Payroll tax penalty } & 4,200 \\\text { Tax-exempt interest } & 5,700 \\\text { Nontaxable life insurance proceeds } & 3,900 \\\text { Insurance premiums paid (nondeductible) } & 2,900\\ \text { Charitable contributions}&17,000\\\end{array}

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Definitions:

Debit Balance

The condition of an account when the total of debits exceeds the total of credits, typically indicating assets or expenses.

Merchandisers

Companies or individuals involved in the business of retailing or wholesaling goods.

Wholesalers

Merchants who buy goods from suppliers and manufacturers for sale to retailers.

Retailers

Merchants who buy goods from wholesalers for resale to customers.

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