Explain the positive and negative adjustments to the basis of an corporation shareholder's stock investment and the basis of an corporation debt owed to the shareholder. C. Select the positive adjustments to the basis of an S corporation shareholder's stock investment. O A. Positive adjustments include distributions excluded from gross income, the allocable share of ordinary losses that are not taken due to recognition rules, and the allocable share of ordinary income and separately stated income and gain items. O B. Positive adjustments include the allocable share of ordinary losses that are not taken due to recognition rules and the allocable share of ordinary income and separately stated income and gain items O C. Positive adjustments include additional capital contributions made during the tax year and the allocable share of ordinary income and separately stated income and gain items. OD. None of the above. Select the negative adjustments to the basis of an S corporation shareholder's stock investment. O A. Negative adjustments include (1) all distributions made to shareholders, (2) the shareholder's allocable share of ordinary loss and separately stated loss and deduction items, and (3) capital contributions made by other partners in order to own more of the partnership and reduce basis for the other partners. OB. Negative adjustments include (1) expense items not deductible in determining ordinary income/loss and that cannot be charged to the capital account, (2) all distributions made to shareholders, and (3) capital contributions made by other partners in order to own more of the partnership and reduce basis for the other partners. O C. Negative adjustments for a shareholder's stock investment include (1) distributions excluded from the shareholder's gross income, (2) expense items not deductible in determining ordinary income (loss) and that cannot be charged to the capital account, and (3) the shareholder's allocable share of ordinary loss and separately stated loss and deduction items. OD. Negative adjustments include (1) distributions excluded from the shareholder's gross income, (2) capital contributions made by other partners in order to own more of the partnership and reduce basis for the other partners, and (3) the allocable share of ordinary losses that the shareholder is not able to recognize. Select the adjustment required for the basis of an S corporation debt owed to the shareholder. O A. Basis adjustments for an S debt owed to a shareholder are treated the same as other positive and negative basis nents for shareholders except distributions do not reduce debt basis. OB. Any net positive basis adjustments restore the basis of S corporation debt owed to the shareholder before any positive basis adjustments increase the shareholder's basis for the corporation stock. O C. The downward loss and deduction adjustments reduce the shareholder's debt basis only after the shareholder's basis for the corporation stock has been reduced to zero. OD. All of the above