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