. . Additional information: During Year 6. HD had sales of $141,000 to JC at a markup of 20 percent of selling price. At December 31, Year 6, the property under renovation Included supplies purchased from HD of $69,000. Olympic completed two projects under the joint operations. Olympic distributed $51,000 of Income to each of the partners In December. HD accounts for its share of Income from the joint operations when it is received from Olympic. HD pays Income tax at a rate of 40%. The Income earned by Olympic is not taxed In Olympic. It is flowed through and taxed in the hands of the partners.