Required information 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 Jullo and Milania each received distributions of $14.000 from Falcons Corporation Falcons Corporation (an Corporation) Income Statement December 31, Year 1 and Year 2 Year 1 Sales revenue 5325,000 3.495.000 Cost of goods sold (41.00) (64.000) Salary to owners Julio and Milania (40.000) (30,000) Employee wages (30.000) 60.000) Depreciation expense (17.000) 34,000) Section 179 expense (30,000) (50.000) Interest income (related to business income) 10,000 13.500 Municipal bond income 1,200 4.600 Government fines 3.00 Overall net Income $ 178,000 3187 Distributions $ 28,000 550.000 . What amount of ordinary income and separate stated items are allocated to them for year 1 based on the information above? Assume that Falcons Corporation has $220,000 per qualified property (unadjusted basis) Amount Alocated to Julio Allocated to Milania Ordinary Income b. Complete Falcon's Form 1120-5. Schedule K. for year 1. (Use 2021 tox rules regardless of year on tax form. Input all values of positive numbers.) Prepare Form 1120-s. Schedule Schedule K for Form 1120-s. Page 3 Form 1120 5 020209 Schedule K Shareholders' Pro Rata Share Items 10 day business iconoss) 1. 21) 2 Nefrente com os como 3s Other Staticom ) b Expenses to other rental activities achat comer net rental income dow) Subtractine Brome 3 1 2 AR Se Income (Loss) 30 Dividends Ordinary dividends buddividends 6 Royati 7 Net short term capital gain lossnach Schede Dom 11205 Ba Nelong term capitano nach Scho Do 112050 Colectie 2016) creatured section 1250 gancha 9 Net section 1231 anos (nach F0797 10 Other income oss) se instructions) Tye 11 Section 17 deduction Tom 4502 12a Charte con Investment est expense Section SoCex) expenditures (1) Type d Other deductions estructions Type 13a Low income housing credit section b Low.come housing credit fother 10 10 123 120 1242) Deductions (2) Amount 130 30 Credits 13c d Other rental real estate credits (see instructions) Other rental credits (see instructions) Biofuel producer credit (attach Form 6478) Other credits (see instructions) 14 Name of country or US possession Son Form 3468 applicable) Type Type 13d 13e Type 131 139 14b 140 140 14 141 149 14h 141 14 b Gross income from all sources c Gross income sourced at shareholder level Foreign gross income sourced at corporate level d Reserved for future use e Foreign branch category Passive category General Category h Other (attach statement) Foreign Deductions allocated and apportioned at shareholder level Transactions Interest expense Other Deductions allocated and apportioned at corporate level to foregn source income k Reserved for future use Foreign branch category m Passive category n General Category o Other (atach statement) Other information p Total foreign taxes (check one) O Pad Reduction in taxes available for credit (attach statement) rother foreign tax information (attach statement) 15a Post-1985 depreciation austment b Adjusted gain or loss Alternative c Depletion other thanol and gas) Minimum Tax dolgas and geothermal properties gross income (AMT) Items Olgas, and geothermal properties deductions 1 Other AMT tems (tach statement) 16a Tax-exempt interest income Items Affecting other tax exempt income Shareholder c Nondeductible expenses Racis Hallintaan 14K 141 14m 14 140 Accrued 14p 149 15a 156 156 15d 180 151 15a 16b 150 164 Required information 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 Jullo and Milania each received distributions of $14.000 from Falcons Corporation Falcons Corporation (an Corporation) Income Statement December 31, Year 1 and Year 2 Year 1 Sales revenue 5325,000 3.495.000 Cost of goods sold (41.00) (64.000) Salary to owners Julio and Milania (40.000) (30,000) Employee wages (30.000) 60.000) Depreciation expense (17.000) 34,000) Section 179 expense (30,000) (50.000) Interest income (related to business income) 10,000 13.500 Municipal bond income 1,200 4.600 Government fines 3.00 Overall net Income $ 178,000 3187 Distributions $ 28,000 550.000 . What amount of ordinary income and separate stated items are allocated to them for year 1 based on the information above? Assume that Falcons Corporation has $220,000 per qualified property (unadjusted basis) Amount Alocated to Julio Allocated to Milania Ordinary Income b. Complete Falcon's Form 1120-5. Schedule K. for year 1. (Use 2021 tox rules regardless of year on tax form. Input all values of positive numbers.) Prepare Form 1120-s. Schedule Schedule K for Form 1120-s. Page 3 Form 1120 5 020209 Schedule K Shareholders' Pro Rata Share Items 10 day business iconoss) 1. 21) 2 Nefrente com os como 3s Other Staticom ) b Expenses to other rental activities achat comer net rental income dow) Subtractine Brome 3 1 2 AR Se Income (Loss) 30 Dividends Ordinary dividends buddividends 6 Royati 7 Net short term capital gain lossnach Schede Dom 11205 Ba Nelong term capitano nach Scho Do 112050 Colectie 2016) creatured section 1250 gancha 9 Net section 1231 anos (nach F0797 10 Other income oss) se instructions) Tye 11 Section 17 deduction Tom 4502 12a Charte con Investment est expense Section SoCex) expenditures (1) Type d Other deductions estructions Type 13a Low income housing credit section b Low.come housing credit fother 10 10 123 120 1242) Deductions (2) Amount 130 30 Credits 13c d Other rental real estate credits (see instructions) Other rental credits (see instructions) Biofuel producer credit (attach Form 6478) Other credits (see instructions) 14 Name of country or US possession Son Form 3468 applicable) Type Type 13d 13e Type 131 139 14b 140 140 14 141 149 14h 141 14 b Gross income from all sources c Gross income sourced at shareholder level Foreign gross income sourced at corporate level d Reserved for future use e Foreign branch category Passive category General Category h Other (attach statement) Foreign Deductions allocated and apportioned at shareholder level Transactions Interest expense Other Deductions allocated and apportioned at corporate level to foregn source income k Reserved for future use Foreign branch category m Passive category n General Category o Other (atach statement) Other information p Total foreign taxes (check one) O Pad Reduction in taxes available for credit (attach statement) rother foreign tax information (attach statement) 15a Post-1985 depreciation austment b Adjusted gain or loss Alternative c Depletion other thanol and gas) Minimum Tax dolgas and geothermal properties gross income (AMT) Items Olgas, and geothermal properties deductions 1 Other AMT tems (tach statement) 16a Tax-exempt interest income Items Affecting other tax exempt income Shareholder c Nondeductible expenses Racis Hallintaan 14K 141 14m 14 140 Accrued 14p 149 15a 156 156 15d 180 151 15a 16b 150 164