Required Information Problem 22-50 (LO 22-3) (Static) [The following information applies to the questions displayed below.) Jack and Jill are owners of UpAHill, an S Corporation. They own 25 and 75 percent, respectively. UpHill Corporation (an S Corporation) Income Statement December 31, Year 1 and Year 2 Year 1 Year 2 Sales revenue $ 175,eee $310, cee Cost of goods sold (60,eee) (85,000) Salary to Owners Jack and Jill (40,eee) (50,000) Employee wages (15,00) (20,000) Depreciation expense (10,eee) (15,000) Miscellaneous expenses (7,500) (9,880) Interest income (related to business) 2,eee 2,500 Qualified dividend income 569 1,000 Overall net income $ 45,000 $ 134,589 Problem 22-50 Part a (Static) a. What amount of ordinary income and separately stated items are allocated to them for years 1 and 2 based on the information above? Assume that UpAHill Corporation has $100.000 of qualified property (unadjusted basis) in both years. Answer is complete but not entirely correct. Jack Jill Year 1 Year 2 Year 1 Year 2 Ordinary income $ 11.125 $ 33,375 $ 33,375 $ 100, 125 Qualified business income s 11.125 $ 33,375 $ 33,375 $ 100,125 Dividend income $ 125 s 250 $ 375 s 750 Allocated wages $ 40.000 $ 40,000 $ 15,000 $ 15,000 Unadjusted basis of qualified property $ 25.000 $ 25,000 IS 75,000 s 75,000