Dustin, Dan, and Dennis operate Heritage Hills dry cleaners as an S corporation. Dustin owns 50% of the business, Dan 30%, and Dennis 20%. For the current year, Heritage Hills reports the following:
How must Heritage Hills report its results to each of the owners?
$$\begin{array} {| l | r | }
\hline\text { Sales revenues } & \$ 400,000 \
\hline \text { Trade and business expenses } & ( 185,000 ) \
\hline \text { Charitable contributions } & ( 5,000 ) \
\hline \text { Short-term capital losses } & ( 4,000 ) \
\hline \text { Long-term capital gains } & 12,000 \
\hline \text { Taxable income } & \$ 218,000 \
\hline
\end{array}$$

Question

Dustin, Dan, and Dennis operate Heritage Hills dry cleaners as an S corporation. Dustin owns 50% of the business, Dan 30%, and Dennis 20%. For the current year, Heritage Hills reports the following:
How must Heritage Hills report its results to each of the owners?
 $$\begin{array} {| l | r | } 
\hline\text { Sales revenues } & \$ 400,000 \
\hline \text { Trade and business expenses } & ( 185,000 ) \
\hline \text { Charitable contributions } & ( 5,000 ) \
\hline \text { Short-term capital losses } & ( 4,000 ) \
\hline \text { Long-term capital gains } & 12,000 \
\hline \text { Taxable income } & \$ 218,000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of Dustin, Dan, and Dennis operate Heritage Hills dry cleaners as an S corporation. Dustin owns 50% of the business, Dan 30%, and Dennis 20%. For the current year, Heritage Hills reports the following:
How must Heritage Hills report its results to each of the owners?
 $$\begin{array} {| l | r | } 
\hline\text { Sales revenues } & \$ 400,000 \
\hline \text { Trade and business expenses } & ( 185,000 ) \
\hline \text { Charitable contributions } & ( 5,000 ) \
\hline \text { Short-term capital losses } & ( 4,000 ) \
\hline \text { Long-term capital gains } & 12,000 \
\hline \text { Taxable income } & \$ 218,000 \
\hline
\end{array}$$

Dustin, Dan, and Dennis Operate Heritage Hills Dry Cleaners as an S