Julio and Milania are owners of Falcons Corporation, an S corporation. Each owns $50$ percent of Falcons Corporation. In year $1,$ Julio and Milania each received distributions of $$15,000$ from Falcons Corporation.

a$.$ What amount of ordinary income and separately stated items are allocated to them for year $1$ based on the information above? Assume that Falcons Corporation has $$200,000$ of qualified property $($unadjusted basis$).$

$\backslash$table$[[,$Amount,$\backslash$table$[[$Allocated to$],[$Julio$]],\backslash$table$[[$Allocated to$],[$Milania$]]],[$Ordinary Income,$$,175,000,$$$,87,500,$$$,87,500],[$Distributions$,30,000,,15,000,,15,000],[$Qualified business income,,,,,$],[$Municipal bond income,,,,,$],[$Unadjusted basis of qualified property,,,,,$],[$Section $179$ expense,,,,,$],[$Allocated wages,,,,,$]]$

of $3$

Next