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

question 107

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 these

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