McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 32

Carmine was allocated the following items from the Piccolo LLC for last year:
Ordinary business loss
Nondeductible penalties
Tax-exempt interest income
Short-term capital gain
Cash distributions
Rank these items in terms of the order they should be applied to adjust Carmine's tax basis in Piccolo for the year (some items may be of equal rank).