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 (unrelated to business) 2,000 2,500 Qualified dividend income 500 1,000 Overall net income $ 45,000 $ 134,500

b. Complete UpAHill's Form 1120-S, Schedule K, for year 1.

c. Complete Jill's Form 1120-S, Schedule K-1, for year 1.

Visit the IRS website and download Form 1120-S, Schedule K-1. Enter the required values in the appropriate fields. Save your completed Tax Form to your computer and then upload it here by clicking "Browse." Next, click "Save."