Falcons Corporation (an S Corporation) Income Statement December 31, Year 1 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 Municipal bond income Government fines Overall net income 300,000 40,000) 40,000) (25,000 20,000) 30,000) 12,000 1,500 $430,000 60,000) 80,000) (50,000) (40,000) (50,000) 22,500 4,000 174,500 158,500 $ 30,000 130000 150000 50,000 Distributions