You can use list comprehension and dictionary comprehension together, like this
d = {'A': 0, 'B': 0, 'C': 0, 'D': 4}
print [{key1: d[key1] + (key1 == key) for key1 in d} for key in d]
Output
[{'A': 1, 'B': 0, 'C': 0, 'D': 4},
{'A': 0, 'B': 0, 'C': 1, 'D': 4},
{'A': 0, 'B': 1, 'C': 0, 'D': 4},
{'A': 0, 'B': 0, 'C': 0, 'D': 5}]
The idea is to generate a new dictionary for each key, and when the key matches the key of the dictionary being constructed with dictionary comprehension, then add 1 to it. (key1 == key) will evaluate to 1 only when both the keys match, otherwise it will be zero.
1s and5are coming from? Please provide full input and some explanation about rules.