Julio and Milania are owners of Falcons Corporation, an S corporation. Each owns percent of Falcons Corporation. In year Julio and Milania each received distributions of $ from Falcons Corporation.

Falcons Corporation an S Corporation

Income Statement

December Year and Year

Year Year

Sales revenue $ $

Cost of goods sold

Salary to owners Julio and Milania

Employee wages

Depreciation expense

Section expense

Interest income related to business income

Municipal bond income

Government fines

Overall net income $ $

Distributions $ $

Problem Part a Static

a What amount of ordinary income and separately stated items are allocated to them for year based on the information above? Assume that Falcons Corporation has $ of qualified property unadjusted basis