Jack and Jill are owners of UpAHill, an S Corporation. They own 25 and 75 percent, respectively.

UpAHill Corporation (an S Corporation)
Income Statement
December 31, Year 1 and Year 2
	Year 1	Year 2
Sales revenue	$ 175,000	$ 310,000
Cost of goods sold	(60,000)	(85,000)
Salary to owners Jack and Jill	(40,000)	(50,000)
Employee wages	(15,000)	(20,000)
Depreciation expense	(10,000)	(15,000)
Miscellaneous expenses	(7,500)	(9,000)
Interest income (related to business)	2,000	2,500
Qualified dividend income	500	1,000
Overall net income	$ 45,000	$ 134,500

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 UpAHill Corporation has $100,000 of qualified property (unadjusted basis) in both years.

WHAT IS THE ALLOCATED WAGES FOR YEAR 1 AND 2 ?