Required information 13 [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 1, Julio and Milania each received distributions of $15,000 from Falcons Corporation. Falcons Corporation (an S Corporation) Income Statement December 31, Year 1 and Year 2 Sales revenue Cost of goods sold Year 1 $ 300,000 (40,000) Year 2 5 430,000 (60,000) Salary to owners Julio and Milania (40,000) (80,000) Employee wages (25,000) (50,000) Depreciation expense (20,000) (40,000) Section 179 expense (30,000) (50,000) Interest incone (related to business income) 12,000 22,500 Municipal bond incone 1,500 4,000 Government fines Overall net income Distributions $158,500 (2,000) $174,500 $ 30,000 $50,000 c. Complete Julio's 1120-5, Schedule K-1, for year 1 Note: Use 2022 tax rules regardless of year on tax form. Input all values as positive numbers. Falcons Corporation EIN: 58-111 Shareholder's identifying number: 111-11-1111 Required information. Prepare Form 1120-S. Schedule K1 Complete Julio's 1120-S, Schedule K-1, for year 1. Answer is not complete. Schedule K-1 2021 (Form 1120- S) Final K-1 Amended K-1 Part III OMB No. 1545-0123 Shareholder's Share of Current Year Income, Deductions, Credits, and Other Items Department of the Treasury For calendar year 2021, or tax year 1 Ordinary business income (loss) 13 Credits Internal Revenue Service beginning 2021 93,500 Net rental real estate ending 201 2 income (loss) Shareholder's Share of Income, Deductions, Credits, etc. See back of form and separate Instructions. Other net rental income Schedule K-3 is attached if 3 14 (loss) checked Part I Information About the Corporation 4 Interest income Corporation's employer identification number 58-1111111 Sa Ordinary dividends B Corporation's name, address, city, state, and ZIP code Falcons Corporation 5b Qualified dividends C IRS Center where corporation filed return 6 Royalties D Corporation's total number of shares Beginning of tax year + 7 Net short-term capital gain (loss) End of tax year Part II Information About the Shareholder Ba Net long-term capital gain (loss) E Shareholder's identifying number 111-11-1111 Alternative minimum tax (AMT) ms Collectibles (28%) gain (loss) 15 Unrecaptured section F Shareholder's name, address, city, state, and ZIP code Be 1250 gain Julio ' Net section 1231 gain (loss) 10 Other inerman information about the snaranninar Ra Required information 111-1111 F Shareholder's name, address, city, state, and ZIP code Julio G Current year allocation percentage H 1 Shareholder's number of shares Beginning of tax year End of tax year Loans from shareholder Beginning of tax year End of lax year For IRS Use Only 50 GU (loss) Unrecaptured section 1250 gain (AMT) items Net section 1231 gain (loss) 10 Other income (loss) Items affecting 16 shareholder basis 11 Section 179 deduction 15,000 12 Other deductions A 17 Other information STMT For Paperwork Reduction Act Notice, see Instructions for Form 1065 18 19 More than one activity for at-risk purposes More than one activity for passive activity purposes "See attached statement for additional information. www.irs.gov/Form1065 Cat. No. 11394R Schedule K-1 (Form) 1065) 2021 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 Schedirle K next +