An item that appears in the "Other Adjustments Account" affects stock basis, but not AAA, such as tax-exempt life insurance proceeds.

Name: An item that appears in the "Other Adjustments Account" affects stock basis, but not AAA, such as tax-exempt life insurance proceeds.
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Question

Quizplus · Accepted Answer

Items that affect stock basis but not AAA include tax-exempt life insurance proceeds, whereas items that affect AAA but not stock basis include accumulated earnings and profits distributions. Therefore, the statement is true.

An Item That Appears in the "Other Adjustments Account" Affects