Question
Please I need help with this homework. Thank you Use the following information to complete problems: UpAHill Corporation (an S corporation) Income Statement December 31,
Please I need help with this homework. Thank you
Use the following information to complete problems:
UpAHill Corporation (an S corporation) Income Statement December 31, year 1 and year 2 | ||
| Year 1 | Year 2 |
Sales revenue | $175,000 | $310,000 |
Cost of goods sold | (60,000) | (85,000) |
Salary to owners Jack and Jill | (40,000) | (50,000) |
Employee wages | (15,000) | (20,000) |
Depreciation expense | (10,000) | (15,000) |
Miscellaneous expenses | (7,500) | (9,000) |
Interest income (related to business) | 2,000 | 2,500 |
Qualified dividend income | 500 | 1,000 |
Overall net income | $45,000 | $134,500 |
50. [LO 3] Jack and Jill are owners of UpAHill, an S corporation. They own 25 and 75 percent, respectively.
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.
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