Using the categories in the following legend, classify each transaction as a plus (+) or minus (−) on Schedule M–2 of Form 1120S. An answer might look like one of these: “+AAA” or “−OAA.”
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Legend |
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AAA |
= |
Accumulated adjustments account |
|
OAA |
= |
Other adjustments account |
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NA |
= |
No direct effect on Schedule M–2 |
a. Receipt of tax exempt interest income.
b. Unreasonable compensation determined.
c. Depreciation recapture income.
d. Nontaxable life insurance proceeds.
e. Expenses related to tax exempt securities.
f. Charitable contributions.
g. Business gifts in excess of $25.
h. Nondeductible fines and penalties.
i. Administrative expenses.