In year 2, Julio and Milania received distributions of $20,000 and $30,000, respectively, from Falcons Corporation.

Sales revenue $ 300,000 $ 430,000

Cost of goods sold (40,000 ) (60,000 )

Salary to owners Julio and Milania (40,000 ) (80,000 )

Employee wages (25,000 ) (50,000 )

Depreciation expense (20,000 ) (40,000 )

Section 179 expense (30,000 ) (50,000 )

Interest income 12,000 22,500

Municipal bond income 1,500 4,000

Government fines 0 (2,000 )

What amount of ordinary income and separately stated items are allocated to them for year 2 based on the information above?

Complete Falcons Form 1120S, Schedule K for year 2.

Complete Milania