Jack and Jill are owners of UpAhill and S Corporation. They own 25 and 75 percent. What amount of ordinary income and seperately stated items are allocated to them for years 1 and 2 based on the information. Assume that upahill Corp has 1000,000 of qualified property

Sale revenue 175000 year 1 year 2 310000

Cost of good sold -60000 year 1 -85000

Salary to owners Jack and Jill-40000 year 1 -50000 year 2

Employee wages-15000 year 1 -20000 year 2

Depreciation expense -10000 -15000

Miscellaneous expenses -7500 year -9000 year 2

Interest income 2000 year 1 2500 year 2

Qualified dividend income 500 year 1 1000 year 2

Overall net income 45,000 year 1 134,000 year2