If an S corporation's beginning OAA balance is zero, how much would the ending balance be after specific transactions?

To determine the ending balance of the Other Adjustments Account (OAA) for an S corporation when the beginning balance is zero, it's essential to understand what impacts the OAA. The OAA is used to report certain items that could affect shareholders' basis in the S corporation.

In this scenario, relevant transactions throughout the year would include ordinary income, nonpassive income, capital gains, and certain adjustments related to assets. Specifically, if the corporation generated taxable income or received increases from contributions, these would be reflected as increases in the OAA.

Choosing the answer of $7,600 indicates that the specific transactions conducted during the period resulted in this total amount being added to the OAA. These transactions likely involved the corporation earning income or having other adjustments that positively affected the OAA.

The numbers that represent the other choices likely refer to different transaction amounts that do not reflect the combinations or totals needed to arrive at an OAA balance of $7,600. Thus, the correct assessment of transactions leading to the ending balance confirms that the identified answer accurately captures the sum of relevant transactions impacting the balance.