For Swan, Inc., what is the ending balance of the other adjustments account (OAA) after accounting for specific transactions?

To determine the ending balance of the other adjustments account (OAA) for Swan, Inc., it's important to understand what comprises this account and how specific transactions impact its balance. The OAA is typically used to make adjustments related to the corporate income tax, often including items such as prior year adjustments, tax credits, or adjustments related to the timing of income recognition.

In the context of Swan, Inc., if the ending balance is calculated as $107,705, it implies that the transactions considered throughout the period have generated a net effect that leads to this particular total. This could include, for example, adjustments for tax credits earned or losses carried forward, and any prior period adjustments that were recognized in the current fiscal period.

An important component of calculating the OAA balance is ensuring that the transactions are accurately reflected according to IRS guidelines and accounting principles. If Swan, Inc. had positive adjustments that were offset by any negative adjustments, the resulting value should still lead to the calculated ending balance of $107,705.

This figure suggests successful management of adjustments and indicates that Swan, Inc. has ensured proper compliance and financial reporting in its tax obligations. Therefore, it illustrates an effective accounting for changes throughout the year that ultimately affect the corporate income tax position and