You are a 60% owner of an S corporation. Calculate your ending stock basis, based upon these facts.

Beginning stock basis $52,600

Purchases of additional stock 15,000

Insurance premiums paid (nondeductible) 3,600

Tax-exempt interest income 5,230

Payroll tax penalty 3,770

Increase in AAA 22,400

Increase in OAA 5,800

Follow-up question: Don't tax-exempt income, insurance premiums paid, and tax penalties affect stock basis? Need explanation as to why were adding/subtracting things, or why an item is not included for the computation of ending stock basis. It's not helpful otherwise and will thumbs down if answer is just copy and paste. Thanks.