Question 2 8 pts Nicole and Paula each own 50 percent of Magnolia, an S corporation....

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Question 2 8 pts Nicole and Paula each own 50 percent of Magnolia, an S corporation. Magnolia reported the following revenues and expenses: . Sales revenue - $720,000 Cost of goods sold - ($200,000) Depreciation expense (MACRS) - ($12,000) Sec. 179 expense- ($44,000) Long-term capital gains - $8,000 Qualified dividends - $5,000 Nontaxable interest income - $3,000 Salary to owners - ($120,000) Employee wages (excluding salaries to owners) - ($50,000) In addition, Nicole and Paula each received distributions of $10,000 from Magnolia. [part 1] What amount of ordinary business income is allocated to Nicole? [part 2] What are the separately stated items allocated to Nicole? [part 3] If Nicole's basis in her Magnolia stock at the beginning of the year was $40,000, what is her basis after considering the above items? Question 2 8 pts Nicole and Paula each own 50 percent of Magnolia, an S corporation. Magnolia reported the following revenues and expenses: . Sales revenue - $720,000 Cost of goods sold - ($200,000) Depreciation expense (MACRS) - ($12,000) Sec. 179 expense- ($44,000) Long-term capital gains - $8,000 Qualified dividends - $5,000 Nontaxable interest income - $3,000 Salary to owners - ($120,000) Employee wages (excluding salaries to owners) - ($50,000) In addition, Nicole and Paula each received distributions of $10,000 from Magnolia. [part 1] What amount of ordinary business income is allocated to Nicole? [part 2] What are the separately stated items allocated to Nicole? [part 3] If Nicole's basis in her Magnolia stock at the beginning of the year was $40,000, what is her basis after considering the above items?