Sheridan School Inc.

“The earnings from investing of endowment funds will be used to provide need-based scholarships and support professional development opportunities and compensation for teachers, as well as other program needs.”

“The school is generally exempt from federal income taxes under the provisions of section 501(c)(3) of the internal revenue code. In addition, the school has been determined by the internal revenue service (irs) not to be a private foundation. Income which is not related to exempt purposes, less applicable deductions, is subject to federal and state income taxes. For the year ended june 30, 2014, the school had no taxable unrelated business income, and accordingly, no provision for income taxes is required in the accompanying financial statements. Deferred taxes are provided on a liability method, whereby, deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The school adopted the accounting standard on accounting for uncertainty in income taxes, which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under this guidance, the school may recognize the tax benefit from an uncertain tax position only if it is more-likely-than-not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The guidance on accounting for uncertainty in income taxes also addresses de-recognition, classification, interest and penalties on income taxes, and accounting in interim periods. Management evaluated the school's tax positions and concluded that the school has taken no uncertain tax positions that require adjustment to the financial statements to comply with the provisions of this guidance. Generally, the school is no longer subject to income tax examinations by the u.s. Federal, state, or local tax authorities for years before 2011.”

“Financial aid netted against tuition revenue -870,178.”

“Life insurance proceeds 137,060.”

“Life insurance proceeds -137,060.”

“Financial aid netted against tuition revenue 870,178.”