4 Required information The following information applies to the questions displayed below.] Julio and Milania are owners of Falcons Corporation, an S corporation. They each own 50 percent of Falcons Corporation 0.13/1 points awarded In year 2, Julio and Milania each received distributions of $25,000 from Falcons Corporation Falcons Corporation (an S Corporation) Income Statement December 31, Year 1 and Year 2 Scored Year 1 Year 2 Sales revenue Cost of goods sold Salary to owners Julio and Milania Employee wages Depreciation expense Section 179 expense Interest income (related to $ 300,000 430,000 (40,000) (60,000) (40,000) (80,000) (25,000) (50,000) (20,000) (40,00) (30,000) (50,000) 22,500 4,000 2,000 $158,500 174,500 12,000 1,500 business) Municipal bond income Government fines Overall net income Distributions $ 30,000 50,000 a. What amount of ordinary income and separately stated items are allocated to them for year 2 based on the information above? Assume that Falcons Corporation has $200,000 of qualified property (unadjusted basis). Julio Milania Ordinary Income Section 179 expense Interest income Municipal bond income Distributions S 175,000 30,000 22,500 15,000 30,000 87,500 XS 87,500 15,000 11,250 750 15,000 15,000 11,250 750 15,000