Saved 6 Julio and Milania are 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. Talcons Corporation (ans Corporation) Income Statement December 31, Year 1 and Year 2 Year 1 Year 2 Sales revenue $ 325,000 $ 455,000 Cost of goods sold (42,000) (65,000) 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 1,500 4,000 Government fines (2.000) $ 176,500 $ 183,500 Overall net income $ 30,000 $ 50,000 Distributions Problem 22-52 Part a (Algo) 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 $220,000 of qualified property (unadjusted basis). Allocated to Julio Allocated to Milania Amount 15,000 750 15,000 750 30,000 1,500 Ordinary Income Section 179 expense Municipal bond Income 15 ml 15 onts s 30.00nl s Next > 3 of 3 !! Qualified business Income Distributions 1 2 Prev Book Air