Julio and Milania are owners of Falcons Corporation, an S corporation. Each owns 50 percent of Falcons Corporation. In year 2, Julio and Milania each received distributions of $25,000 from Falcons Corporation o. What amount of ordinary income and separately stated items are allocated to them for year 2 based on the information above? Assume that Falcons Corporation has $200,000 of qualified property (unadjusted basis). Birch Corporation, a calendar-year corporation, was formed three years ago by its sole shareholder, Jarnes, who has operated it as an S corporation since its inception. Last year, James made a direct loan to Birch Corporation in the amount of \$5,950. Birch Corporation has paid the interest on the loan but has not yet paid any principal. (Assume the loan qualifies as debt for tax purposes.) For the year, Birch experienced a' $26,100 business loss What amount of the loss clears the tax-basis limitation, and what is James's basis in his Birch Corporation stock and Birch Corporation debt in each of the following alternative scenarios? Note: Leave no onswer blank. Enter zero if applicable. Problem 17-57 Part a (Algo) At the beginning of the year. James's basis in his Birch Corporation stock was $49,100 and his basis in his Birch Corporation debt vas $5,950 Birch Corporation, a calendar-year corporation, was tormed three years ago by its sole shareholder, James, who has operated it as an S corporation since its inception. Last year, James made a direct loan to Birch Corporation in the amount of $5,950. Birch Corporation has pald the interest on the loan but has not yet paid any principal. (Assume the loan qualifies as debt for tax purposes.) For the year, Birch experienced a $26,100 business loss. What amount of the loss clears the tax-basis limitation, and what is James's basis in his Birch Corporation stock and Birch Corporation debt in each of the following alternative scenarios? Note: Leave no onswer blonk. Enter zero if applicoble. Problem 17-57 Part b (Algo) b. At the beginning of the year. James's basis in his Birch Corporation stock was $9,900 and his basis in his Birch Corporation debt was $5,950