Which Transaction Affects the Other Adjustments Account on an S

question 23

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.

---

Definitions:

Aggressive Model

A theory or framework that explains aggressive behavior as a learned response, often through observation and imitation of others.

Justified Aggression

Aggressive behavior that is deemed acceptable or reasonable under certain circumstances.

Imitate

The action of copying or mimicking the behaviors, actions, or appearance of someone else as a form of learning or social interaction.

Psychological Disorder

A condition characterized by abnormal thoughts, feelings, or behaviors that lead to distress, impairment, or both.