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

question 107

Essay

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?

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Definitions:

Bursae

Small fluid-filled sacs located between bones and soft tissues, reducing friction and cushioning joints.

Median Plane

An anatomical reference line that divides the body into equal left and right halves.

Frontal Plane

An anatomical division of the body that separates the front (anterior) from the back (posterior).

Abduction

The movement of a limb or other part away from the midline of the body or from another part.