Pamela Burns is a 40% shareholder in Rubio Corporation. She is aware of the tax consequences of the various items listed on the Schedule K-1 (Form 1120S) she received, but does not know of their effect on basis. Since she is considering selling her stock and wants to estimate the gain or loss, she requests your help. Write a letter to Pamela (4120 Chestnut Lane, Philadelphia, PA 19104) summarizing the changes to stock basis that the 2009 transactions cause.