For each of the following independent statements, indicate whether the transaction will increase (+), decrease (–), or have no effect (NE) on the basis of a shareholder's stock in an S corporation.
a. Expenses related to tax-exempt income.
b. Short-term capital gain.
c. Nonseparately computed loss.
d. Section 1231 gain.
e. Depletion not in excess of basis.
f. Separately computed income.
g. Nontaxable return-of-capital distribution by the corporation.
h. Advertising expenses.
i. Business gifts in excess of $25.
j. Depreciation recapture income.
k. Dividends received by the S corporation from an investment in ExxonMobil stock.
l. LIFO recapture tax paid.
m. Recovery of a bad debt previously deducted.
n. Long-term capital loss.
o. Shareholder distribution out of AAA.