Julio and Milania are owners of Falcons Corporation, an S corporation. They each own 50 percent of Falcons Corporation In year 2, Julio and Milania each received distributions of $25,000 from Falcons Corporation. Falcons Corporation (an S Corporation) Income Statement December 31, Year 1 and Year 2 Year 1 Year 2 Sales revenue Cost of goods sold Salary to owners Julio and Milania Employee wages Depreciation expense Section 179 expense Interest income Municipal bond income Government fines $300,000 $430,000 (40,000) (60,000) (40,000) (80,000) (25,000) (50,000) (20,000 (40,000) (30,000) (50,000) 12,000 1,500 22,500 4,000 (2,000 $158,500 $174,500 Overall net income Distributions $ 30,000 50,000 a. What amount of ordinary income and separately stated items are allocated to them for year 2 based on the information above? Amount Julio Milania Ordinary Income