Problem 22-53 (LO 22-3) (Static) [The following information applies to the questions displayed below.) 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 Falcons Corporation (an S Corpolition) Income Statement December 31, Year 1 and Year 2 Sales revenue Year 1 Year 2 $ 300,000 $ 430,000 Cost of goods sold (40,000) (60,000) Salary to owners Julio and Milania (40,000) (80,000) Employee wages Depreciation expense (25,000) (50,000) Section 179 expense (20,000) (40,000) Interest income (related to business income (30,000) (50,000) 12,000 22,500 Municipal bond income 1,500 4,000 Government fines (2.000) Overall net income $ 158,500 $ 174,500 Distributions $ 30,000 $ 50,000 0 a. What amount of ordinary income and separately stated items are allocated to them for year 2 based on the infor Assume that Falcons Corporation has $200,000 of qualified property (unadjusted basis). Answer is not complete. Amount Julio Milania Ordinary Income Section 179 expense Municipal bond income Nondeductible fines Unadjusted basis of qualified property Allocated wages Distributions