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 $14,000 from Falcons Corporation.

b. Complete Falconss Form 1120-S, Schedule K, for year 1.

Note: Use 2022 tax rules regardless of year on tax form. Input all values as positive numbers.

Form 1120-S (2021) Page 3 THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. @ 2021 McGraw-Hill Education.