UpAHill Corporation (an Scorporation) Income Statement December 31, year 1 and year 2 Year 1 Year 2 Sales revenue $175,000 $310,000 Cost of goods sold (60,000) (85,000) Salary to owners Jack and Jill (40,000) (50,000) Employee wages (15,000) (20,000) Depreciation expense (10,000) (15,000) Miscellaneous expenses (7,500 (9,000) Interest income (related to business) 2,000 2,500 Qualified dividend income 500 1,000 Overall net income $45,000 $134,500 LO 3] Jack Ham (SSN 595432014) and Jill Collymore (SSN 274382079) are owners of UPAHill, an S corporation. Jack Ham contributed $25,000 in capital, and Jill Collymore contributed $75,000 in capital, at the beginning of year 1. They own 25 and 75 percent, respectively. They share salaries equally. The Balance Sheet for the S Corporation is as follows: Assets Cash Total Assets Year 1 End Year 2 End $100,000 $100,000 $100,000 $100,000 Stockholders' Equity $100,000 $100,000 Total Stockholders' Equity $100.000 $100,000 UpAHill Corporation (an Scorporation) Income Statement December 31, year 1 and year 2 Year 1 Year 2 Sales revenue $175,000 $310,000 Cost of goods sold (60,000) (85,000) Salary to owners Jack and Jill (40,000) (50,000) Employee wages (15,000) (20,000) Depreciation expense (10,000) (15,000) Miscellaneous expenses (7,500 (9,000) Interest income (related to business) 2,000 2,500 Qualified dividend income 500 1,000 Overall net income $45,000 $134,500 LO 3] Jack Ham (SSN 595432014) and Jill Collymore (SSN 274382079) are owners of UPAHill, an S corporation. Jack Ham contributed $25,000 in capital, and Jill Collymore contributed $75,000 in capital, at the beginning of year 1. They own 25 and 75 percent, respectively. They share salaries equally. The Balance Sheet for the S Corporation is as follows: Assets Cash Total Assets Year 1 End Year 2 End $100,000 $100,000 $100,000 $100,000 Stockholders' Equity $100,000 $100,000 Total Stockholders' Equity $100.000 $100,000