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

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:
How must Heritage Hills report its results to each of the owners?
$$\begin{array} {| l | r | } \hline\text { Sales revenues } & \$ 400,000 \\\hline \text { Trade and business expenses } & ( 185,000 ) \\\hline \text { Charitable contributions } & ( 5,000 ) \\\hline \text { Short-term capital losses } & ( 4,000 ) \\\hline \text { Long-term capital gains } & 12,000 \\\hline \text { Taxable income } & \$ 218,000 \\\hline\end{array}$$