PLEASE FIND THE ALLOCATED WAGES AND THE UNADJUSTED BASIS OF QUALIFIED PROPERTY

Required information [The following information applies to the questions displayed below.] Jack and Jill are owners of UpAHill, an S Corporation. They own 25 and 75 percent, respectively. UpAHill Corporation (an S Corporation) Income Statement December 31, Year 1 and Year 2 Sales revenue Cost of goods sold Salary to owners Jack and Jill Employee wages Depreciation expense Miscellaneous expenses Interest income (related to business) Qualified dividend income Overall net income a. What amount of ordinary income and separately stated items are allocated to them for years 1 and 2 based on the information above? Assume that UpAHill Corporation has $100,000 of qualified property (unadjusted basis) in both years. Ordinary income Qualified business income Dividend income Allocated wages Unadjusted basis of qualified property > Answer is complete but not entirely correct. Jill Jack Year 1 $ 175,000 (60,000) (40,000) (15,000) (10,000) (7,500) 2,000 500 $ 45,000 S $ 11,125 $ S 125 IS 0X S S 0 IS 55 S Year 1 Year 2 11,125 $ 33,375 33,375 $ 250 S 0X S 0 IS Year 2 $ 310,000 (85,000) (50,000) (20,000) (15,000) (9,000) 2,500 1,000 $ 134,500 Year 1 $ 33,375 Year 2 $ 100,125 $ 100,125 33,375 375 0X S S 750 0 S 0x 0x