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Use the following information to complete this problem: Sales revenue $175,000 Interest income 2,000 Cost of goods sold 60,000 Salary to owners Jack and Jill

Use the following information to complete this problem:

Sales revenue

$175,000

Interest income

2,000

Cost of goods sold

60,000

Salary to owners Jack and Jill

40,000

Employee wages

15,000

Depreciation expense (using IRS tables)

10,000

Supplies expense

7,500

Charitable contributions

5,000

Jack and Jill are owners of UpAHill, an S Corporation. They own 25 and 75 percent, respectively.

What amount of ordinary income will be reported on Jack's Schedule K-1?

What amount of ordinary income will be reported on Jill's Schedule K-1?

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