50. Jack and Jill are owners of UpAHill, an S corporation.

They own 25 and 75 percent, respectively.

a. What amount of ordinary income and separately stated items are allocated to them for years 1 and 2 based on the information above? Assume that UpAHill Corporation has $100,000 of qualified property (unadjusted basis) in both years.

b. Complete UpAHill’s Form 1120S, Schedule K, for year 1.

c. Complete Jill’s 1120S, Schedule K-1, for year 1.