If an S corporation's beginning balance in OAA is zero, and the following transactions occur, what is the ending OAA balance?

Question

If an S corporation's beginning balance in OAA is zero, and the following transactions occur, what is the ending OAA balance?  ​

Quizplus · Accepted Answer

1. Issuance of common stock for cash - increases OAA by $5,000 to a balance of $5,000.
2. Net income of $2,000 - increases OAA by $2,000 to a balance of $7,000.
3. Cash dividends declared and paid of $400 - decreases OAA by $400 to a balance of $6,600.
4. Purchase of equipment for cash of $200 - decreases OAA by $200 to a balance of $6,400.
5. Purchase of land for cash of $1,200 - decreases OAA by $1,200 to a balance of $5,200.
6. Loan from shareholder of $10,000 - increases OAA by $10,000 to a balance of $15,200.
7. Payment of interest on loan of $300 - decreases OAA by $300 to a balance of $14,900.
8. Loan repayment of $3,500 - decreases OAA by $3,500 to a balance of $11,400.
9. Loan repayment of $7,300 - decreases OAA by $7,300 to a balance of $4,100.
10. Unrealized loss on available-for-sale securities of $1,800 - decreases OAA by $1,800 to a balance of $2,300.
11. Sale of available-for-sale securities for $6,100, with a cost basis of $5,200 - increases OAA by $900 to a balance of $3,200.
12. Payment of income tax liability of $700 - decreases OAA by $700 to a balance of $2,500.
13. Unrealized gain on available-for-sale securities of $3,000 - increases OAA by $3,000 to a balance of $5,500.
14. Sale of available-for-sale securities for $4,500, with a cost basis of $4,000 - increases OAA by $500 to a balance of $6,000.
15. Depreciation expense of $400 - decreases OAA by $400 to a balance of $5,600.
16. Amortization expense of $100 - decreases OAA by $100 to an ending balance of $5,500.

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