Required information Problem 22-52 (LO 22-3) (Algo) (The following information applies to the questions displayed below.) Julio and Milania are owners of Falcons Corporation, an Scorporation. Each owns 50 percent of Falcons Corporation. In year 1, Julio and Milania each received distributions of $12,000 from Falcons Corporation. Falcons Corporation an s Corporation) Income Statement December 31, Year 1 and Year 2 Year Year 2 sales revenue $ 330,000 $ 460,000 Cost of goods sold (42,000) 165,000) 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 1,100 3,200 Government fines 0 (3,000) Overall net income $. 181,100 $ 187,700 Distribution $ 24,000 $ 50,000 Problem 22-52 Part b (Algo) b. Complete Falcons's Form 1120-5, Schedule K, for year 1 Prepare Form 1120-s. Schedule K JUU Required Information Page 3 Total amount Form 1120-8 (2020) Schedule K 3b Sb Income (LOS) 10 11 Deductions Shareholders' Pro Rata Share Items 1 Ordinary business income foss) (page 1. line 21) 2 Net rental real estate income foss) (attach Form 1025) 3. Other gross rental income osa) Expenses from other rental activities (attachement) Othernet Income foss) Subtractine 3b from ineja 4 interest income Dividende Ordinary dividende b Qualified dividende 6 Royalties 7 Net short-term capital gainos) (tach Schedule (Form 1120-51) Da Net long term capital gain (los) (artach Schedule D Form 1120-)) Colectibles (20%) gan ) c Unrecaptured section 1250 gain (attach statement) Nel section 1231 an (oss) (attach Form 4797) 10 Other income foss) (instructions) Type 11 Section 170 sudionach Form 480) 12 Chantaleonton Investment interest expense Section (2) expendios (1) Type de deductions ensucions) TYD 138 Lowoom housing credit con 420001 blow.income housing credit fother) Qualified rehabilitation perdures frent realestate) Gattan Form 346, aplicable) do real estate constructions) Type: One Instruction) Type Biofuel producer rede wach Form 6478) gowce se inta) Type 14a Name of country US Down Gross income from all cross income sourced at shareholder level - Foreign gross income source corporative Reserved for reuse Foreign branchegory Passive category gurural category Other statement Deduction socated and apportioned sharider level (2) Amount 126 1262 12d 118 13b 130 130 130 3r 139 Credits G 140 140 14d 1.4 141 149 14h Foreign HF Required Information 14 16 Foreign Transactions Gener Category Other (wilach statement) - Deduction located and apportioned at shareholder level Interest expense Other 141 14 -Deductions alocated and apportioned at corporate level to foreign source nome 14 141 14 14 140 14p 149 Reserved for More 1 Foreign branch category m Passive category General Category o Other (atach statement) - Other Information Total foreign taxes (check one) Paid Accrued Reduction in tasavalable for credit (attach statement) Other foreign tax information (atach teren) 15a Post-1905 depreciation adjustment b Adjusted gain or los Alternative c Depletion other than oil and gas) Minimum Tax dolgos, and geothermal properties-gross income (AMT) Items Ollgas, and geothermal properties-eductions 1 Other AMT items (tach Matament T Tax-exempt interest income Items Affecting Over tax exempt income Shareholder c Nondeductible expenses Basis Darbons (attachment required instructions Repayment of loans from Pareholders 17 Investor come Other Investment expenses Information c Divind distribution paid from would earnings and profita der Boms and amach statement 16 income reconcion Combine the amounts on es trough 10 in the right column from the resulttract Reconciliation the sum of the souris on line 11 og 12 and 1 150 15b 156 150 150 154 166 16b 160 160 16 17a 1TB 170 0 com 1120-5 126001 THE FORM IS A SIMULATION OF AN OFFICIALUS 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 Maraw. Hal Education GR Required information Problem 22-52 (LO 22-3) (Algo) (The following information applies to the questions displayed below.) Julio and Milania are owners of Falcons Corporation, an Scorporation. Each owns 50 percent of Falcons Corporation. In year 1, Julio and Milania each received distributions of $12,000 from Falcons Corporation. Falcons Corporation an s Corporation) Income Statement December 31, Year 1 and Year 2 Year Year 2 sales revenue $ 330,000 $ 460,000 Cost of goods sold (42,000) 165,000) 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 1,100 3,200 Government fines 0 (3,000) Overall net income $. 181,100 $ 187,700 Distribution $ 24,000 $ 50,000 Problem 22-52 Part b (Algo) b. Complete Falcons's Form 1120-5, Schedule K, for year 1 Prepare Form 1120-s. Schedule K JUU Required Information Page 3 Total amount Form 1120-8 (2020) Schedule K 3b Sb Income (LOS) 10 11 Deductions Shareholders' Pro Rata Share Items 1 Ordinary business income foss) (page 1. line 21) 2 Net rental real estate income foss) (attach Form 1025) 3. Other gross rental income osa) Expenses from other rental activities (attachement) Othernet Income foss) Subtractine 3b from ineja 4 interest income Dividende Ordinary dividende b Qualified dividende 6 Royalties 7 Net short-term capital gainos) (tach Schedule (Form 1120-51) Da Net long term capital gain (los) (artach Schedule D Form 1120-)) Colectibles (20%) gan ) c Unrecaptured section 1250 gain (attach statement) Nel section 1231 an (oss) (attach Form 4797) 10 Other income foss) (instructions) Type 11 Section 170 sudionach Form 480) 12 Chantaleonton Investment interest expense Section (2) expendios (1) Type de deductions ensucions) TYD 138 Lowoom housing credit con 420001 blow.income housing credit fother) Qualified rehabilitation perdures frent realestate) Gattan Form 346, aplicable) do real estate constructions) Type: One Instruction) Type Biofuel producer rede wach Form 6478) gowce se inta) Type 14a Name of country US Down Gross income from all cross income sourced at shareholder level - Foreign gross income source corporative Reserved for reuse Foreign branchegory Passive category gurural category Other statement Deduction socated and apportioned sharider level (2) Amount 126 1262 12d 118 13b 130 130 130 3r 139 Credits G 140 140 14d 1.4 141 149 14h Foreign HF Required Information 14 16 Foreign Transactions Gener Category Other (wilach statement) - Deduction located and apportioned at shareholder level Interest expense Other 141 14 -Deductions alocated and apportioned at corporate level to foreign source nome 14 141 14 14 140 14p 149 Reserved for More 1 Foreign branch category m Passive category General Category o Other (atach statement) - Other Information Total foreign taxes (check one) Paid Accrued Reduction in tasavalable for credit (attach statement) Other foreign tax information (atach teren) 15a Post-1905 depreciation adjustment b Adjusted gain or los Alternative c Depletion other than oil and gas) Minimum Tax dolgos, and geothermal properties-gross income (AMT) Items Ollgas, and geothermal properties-eductions 1 Other AMT items (tach Matament T Tax-exempt interest income Items Affecting Over tax exempt income Shareholder c Nondeductible expenses Basis Darbons (attachment required instructions Repayment of loans from Pareholders 17 Investor come Other Investment expenses Information c Divind distribution paid from would earnings and profita der Boms and amach statement 16 income reconcion Combine the amounts on es trough 10 in the right column from the resulttract Reconciliation the sum of the souris on line 11 og 12 and 1 150 15b 156 150 150 154 166 16b 160 160 16 17a 1TB 170 0 com 1120-5 126001 THE FORM IS A SIMULATION OF AN OFFICIALUS 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 Maraw. Hal Education GR