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 $ 175,000 $310,888 Cost of goods sold (60,000) (85,880) Salary to owners Jack and Jill (40,880) (50,880) Employee wages (15, 000) (20,000) Depreciation expense (10,888) (15,880) Miscellaneous expenses (7,500) (9,880) Interest income (related to business) 2,888 2,500 Qualified dividend income 500 1,888 Overall net income $ 45,088 $ 134,500 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 UDAHill Corporation has $100,000 of qualified property (unadjusted basis) in both years. Jack Jill Year 1 Year 2 Year 1 Year 2 Ordinary income Dividend income Qualified business income Allocated wages Unadjusted basis of qualified property Assume Jack and Jill, 25 and 75 percent shareholders, respectively, in UPAHill Corporation, have tax bases in their shares at the beginning of year 1 of $24,000 and $56,000, respectively. Also, assume no distributions were made. Given the income statement below, what are their tax bases in their shares at the end of year 1? UpAHill Corporation (an s corporation) Income statement December 31, Year 1 and Year 2 Year 1 Year 2 Sales revenue $ 175,888 $ 310,000 Cost of goods sold (60, eee) (85,200) Salary to owners Jack and Jill (40,000) (50,000 Employee wages 15,880) (20,800) Depreciation expense (10,eee) (15,880) Miscellaneous expenses (7,580) (9,880) Interest income (related to business) 2,eee 2,500 Qualified dividend income 500 1,800 overall net income $ 45,888 $ 134,500 Tax Basis at the end of Year 1 Jack Jill