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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 $$14,000$ from Falcons Corporation.

$\backslash$table$[[\backslash$table$[[$Falcons Corporation $($an S Corporati$],[$Income Statement$],[$December $31,$ Year $1$ and Year $2]],$Year $1,$Year $2],[\backslash$table$[[$Sales revenue$],[$Cost of goods sold$],[$Salary to owners Julio and Milania$],[$Employee wages$],[$Depreciation expense$],[$Section $179$ expense$],[$Interest income $($related to business income$)],[$Municipal bond income$],[$Government fines$]],\backslash$table$[[305,000],[(43,000)$