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