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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?  Depreciation recapture income $21,000 Payroll tax penalty 4,200 Tax -ex empt interest income 5,300 Nontax able life insurance proceeds 5,100 Life insurance premiums paid (nondeductible)  2,800\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

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