Can you please explain why payroll tax penalty ($2,140) and life insurance premiums paid ($2,700) are not deducted to get the ending stock basis? Are they not considered Non-deductible expenses mentioned on the slide?

You are given the following facts about a solely owned S corporation. What is the shareholder's ending stock basis? Increase in AAA+ Increase in OAA + Payroll tax penalty - Beginning stock basis Stock purchases Tax-exempt life insurance proceeds Life insurance premiums paid- (nondeductible) $31,000 6,300 2,140 39,800 22,000 4,800 2,700