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 $$10,000$ from Falcons Corporation.

Falcons Corporation $($an S Corporation$)$

Income Statement

December $31,$ Year $1$ and Year $2$

Year $1$ Year $2$

Sales revenue $ $315,000$ $ $445,000$

Cost of goods sold $(41,000)(62,000)$

Salary to owners Julio and Milania $(40,000)(80,000)$

Employee wages $(25,000)(50,000)$

Depreciation expense $(17,000)(34,000)$

Section $179$ expense $(30,000)(50,000)$

Interest income $($related to business income$)10,00018,500$

Municipal bond income $1,2003,400$

Government fines $0(1,000)$

Overall net income $ $173,200$ $ $189,900$

Distributions $ $20,000$ $ $50,000$

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 $$210,000$ of qualified property $($unadjusted basis$).$