Required Information [The following information applies to the questions displayed below] Jullo 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. Falcons Corporation (an 5 Corporation) Income Statement December 31, Year 1 and Year 2 Year 1 Sales revenue $310,000 Year 2 $440,000 Cost of goods sold, (40,000) (60,000) Salary to owners Julio and Milania (40,000) (80,000) Employee wages (25,000) (50,000) Depreciation expense (15,000) (30,000) Section 179 expense (30,000) (50,000) Interest income (related to business income) 10,000 18,500 Municipal bond income 1,900 Government fines 4,800 (1,000) Overall net income $171,900 $ 192,380 $ 28,000 Distributions $ 50,000 a. What amount of ordinary Income and separately stated items are allocated to them for year 1 based on the information above? Assume that Falcons Corporation has $210,000 of qualified property (unadjusted basis). Ordinary Income Salary to owners Julio and Milania Amount Allocated to Allocated to Julio Milania Income Statement December 31, Year 1 and Year 2 Year 1 $310,000 (40,000) 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 Overall net income Distributions Year 2 $ 440,000 (60,000) (40,000) (80,000) (25,000) (50,000) (15,000) (30,000) (30,000) (50,000) 10,000 18,500 1,900 4,800 (1,000) $ 171,900 $ 192,388 $ 28,000 $ 50,000 a. What amount of ordinary Income and separately stated items are allocated to them for year 1 based on the Inform Assume that Falcons Corporation has $210,000 of qualified property (unadjusted basis). Amount Allocated to Julio Allocated to Milania eBook Print Siributions $ 28,000 $ 50,000 a. What amount of ordinary Income and separately stated items are allocated to them for year 1 based on the information abo Assume that Falcons Corporation has $210,000 of qualified property (unadjusted basis). References Ordinary Income Cost of goods sold C Depreciation expense Distributions Employee wages Government fines Interest income Amount Allocated to Julio Allocated to Milania Prev 8 m Next> (50,000) Part 1 of 3 Section 179 expense (15,000) (38,000) Interest income (related to business income) (30,000) (50,000) 10,000 18,500 Municipal bond income 1,900 4,800 Government fines e 1.66 points Overall net income $171,900 (1,800) $192,300 $28,000 Distributions $ 50,000 eBook Print a. What amount of ordinary Income and separately stated items are allocated to them for year 1 based on the Information above? Assume that Falcons Corporation has $210,000 of qualified property (unadjusted basis). References Ordinary Income Municipal bond income Qualified business income Salary to owners Julio and Milania Sales revenue Section 179 expense Amount Allocated to Julio Allocated so Milania