Julio and Milania are owners of Falcons Corporation, an S corporation. Each owns 50 percent of...

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Julio and Milania are owners of Falcons Corporation, an S corporation. Each owns 50 percent of Falcons Corporation. In year 1, Julio and Milania each received distributions of $10,000 from Falcons Corporation. Sales revenue Cost of goods sold Falcons Corporation (an S Corporation) Income Statenment December 31, Year 1 and Year 2 Salary to oners Julio and Milania Employee wages Depreciation expense Section 179 expense Interest income (related to business income) Municipal bond income Government fines Overall net income Distributions Year 1 $ 335,000 (42,000) (40,000) (30,000) (20,000) (30,000) 10,000 1,700 e $ 184,700 $ 20,000 Year 2 465,000 (65,000) (80,000) (60,000) (40,000) (50,000) 18,500 4,400 (3,000) $ 189,900 $ 50,000 Problem 22-52 Part a (Algo) 4 a. What amount of ordinary income and separately stated items are allocated to them for year 1 based on the information above? Assume that Falcons Corporation has $230,000 of qualified property (unadjusted basis). Ordinary income Section 179 expense Qualified business income Municipal bond income Distributions Unadjusted basis of qualified property Amount Allocated to Julio Prox Allocated to Milania -S *** Mont Julio and Milania are owners of Falcons Corporation, an S corporation. Each owns 50 percent of Falcons Corporation. In year 1, Julio and Milania each received distributions of $10,000 from Falcons Corporation. Sales revenue Cost of goods sold Falcons Corporation (an S Corporation) Income Statenment December 31, Year 1 and Year 2 Salary to oners Julio and Milania Employee wages Depreciation expense Section 179 expense Interest income (related to business income) Municipal bond income Government fines Overall net income Distributions Year 1 $ 335,000 (42,000) (40,000) (30,000) (20,000) (30,000) 10,000 1,700 e $ 184,700 $ 20,000 Year 2 465,000 (65,000) (80,000) (60,000) (40,000) (50,000) 18,500 4,400 (3,000) $ 189,900 $ 50,000 Problem 22-52 Part a (Algo) 4 a. What amount of ordinary income and separately stated items are allocated to them for year 1 based on the information above? Assume that Falcons Corporation has $230,000 of qualified property (unadjusted basis). Ordinary income Section 179 expense Qualified business income Municipal bond income Distributions Unadjusted basis of qualified property Amount Allocated to Julio Prox Allocated to Milania -S *** Mont

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Question a Amount Ordinary Income 335000 42000 4000030000 2000... View the full answer