l T-Mobile 6:19 PM 1. Form 1120S provides an S shareholder's computation of his or her stock basis. 2. The passive investment income of an S corporation includes net capital gains from the sale of stocks and securities 3. If an S corporation's beginning balance in OAA is zero, and the following transactions occur, what is the ending OAA balance? Depreciation recapture income Payro tax penalty Tax-exempt interest income $21,000 4,200 5,300 Nontaxable life insurance proceeds 5,100 Life insurance premiums paid (nondeductible) 2,800 a. $1,300 b. $7,600 c. $23,300 d. $27,500 e. None of the above 4. During the year, Miles Nutt, the sole shareholder of a calendar year S corporation, last year, his stock basis was $4,000. The during the year. It has no accumulated received a distribution of $16,000. At the end of corporation earned S11,000 ordinary income E & P. Which statement is correct