Jullo 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 Falcons Corporation can s Corporation) Income Statement December 31, Year 1 and Year 2 Year 1 Year 2 Sales revenue 5 325,000 $ 455,000 Cost of goods sold (42,000) (65,000) Salary to owners Julio and Milania (40,000) (80,000) Employee wages (30,000) (60,000) Depreciation expense (20,000) (40,000) Section 179 expense (30,000) (50,000) Interest income (related to business income) 12,000 22,500 Municipal bond income 1,500 4,000 Government fines B (3.000) Overall net income 5 176,500 $ 183,500 Distributions $ 30,000 $ 50,000 Problem 17-52 Part a (Algo) 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 $220,000 of qualified property (unadjusted basis). a. What amount of ordinary licome and separately stated items are allocated to them for year 1 based on the information above? Assume that Falcons Corporation has $220,000 of qualified property (unadjusted basis). Amount Allocated to Jullo Allocated to Mina Ordinary Income