ABC, an S corporation that makes gourmet popcorn, is 100% owned by Carli. ABC has two other employees, Caitlyn and Carolyn. How does the corporation handle reporting for the compensation to Carli, Caitlyn, and Carolyn? Caitlyn and Carolyn receive Form W-2 for their wages. ABC will deduct their wages and its share of payroll taxes on Form 1120S. Carli will receive Schedule K-1 (Form 1120-S) reporting her share of income from the corporation and her wages. Caitlyn, Carolyn, and Carli will each receive Form W-2 reporting their wages. ABC will deduct the wages and its share of payroll taxes on Form 1120-S. Carli will receive Schedule K-1 (Form 1120-S) reporting her share of income from the corporation. Caitlyn, Carolyn, and Carli will each receive Form W-2 reporting their wages. ABC will deduct the wages and its share of payroll taxes for Caitlyn and Carolyn on Form 1120-S. Carli will receive Schedule K-1 (Form 1120-S) reporting her share of income from the corporation. Caitlyn, Carolyn, and Carli will each receive Form W-2 reporting their wages. ABC will deduct Caitlyn and Carolyn's wages and its share of payroll taxes for Caitlyn and Carolyn on Form 1120-S. Carli will receive Schedule K-1 (Form 1120-S) reporting her share of income from the corporation