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:
$\begin{array}{l|r}
\hline \text { Sales revenues } & \$ 400,000 \
\hline \text { Trade and business expenses } & (185,000) \
\hline \text { Charitable contributions } & (5,000)\
\hline\text { Short-term capital losses } & (4,000) \
\hline \text { Long-term capital gains } & 12,000 \
\hline\text { Taxable income } & \$ 218.000\
\hline
\end{array}$
How must Heritage Hills report its results to each of the owners?

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:
 $\begin{array}{l|r}
\hline \text { Sales revenues } & \$ 400,000 \
\hline \text { Trade and business expenses } & (185,000) \
\hline \text { Charitable contributions } & (5,000)\
\hline\text { Short-term capital losses } & (4,000) \
\hline \text { Long-term capital gains } & 12,000 \
\hline\text { Taxable income } & \$ 218.000\
\hline 
\end{array}$ 
How must Heritage Hills report its results to each of the owners?

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:
 $\begin{array}{l|r}
\hline \text { Sales revenues } & \$ 400,000 \
\hline \text { Trade and business expenses } & (185,000) \
\hline \text { Charitable contributions } & (5,000)\
\hline\text { Short-term capital losses } & (4,000) \
\hline \text { Long-term capital gains } & 12,000 \
\hline\text { Taxable income } & \$ 218.000\
\hline 
\end{array}$ 
How must Heritage Hills report its results to each of the owners?

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