Julio and Milania are owners of Falcons Corporation, an S corporation. They each own 50 percent of Falcons Corporation. In year 2, Julio and Milania each received distributions of $25,000 from Falcons Corporation. Sales revenue Cost of goods sold Salary to owners Julio and Milania Employee wages Falcons Corporation (an S Corporation) Income Statement December 31, Year 1 and Year 2 Depreciation expense Section 179 expense Interest income Municipal bond income Government fines Overall net income Distributions Ordinary Income a. What amount of ordinary income and separately stated items are allocated to them for year 2 based on the information above? Year 1 Year 2 $300,000 $430,000 (40,000) (60,000) (40,000) (80,000) (25,000) (50,000) (20,000) (40,000) (30,000) (50,000) 12,000 22,500 1,500 4,000 (2,000) $158,500 $174,500 $ 30,000 $ 50,000 Amount Julio Milania
Julio and Milania are owners of Falcons Corporation, an S corporation. They each own 50 percent of Falcons Corporation. In year 2, Julio and Milania each received distributions of $25,000 from Falcons Corporation. Sales revenue Cost of goods sold Salary to owners Julio and Milania Employee wages Falcons Corporation (an S Corporation) Income Statement December 31, Year 1 and Year 2 Depreciation expense Section 179 expense Interest income Municipal bond income Government fines Overall net income Distributions Ordinary Income a. What amount of ordinary income and separately stated items are allocated to them for year 2 based on the information above? Year 1 Year 2 $300,000 $430,000 (40,000) (60,000) (40,000) (80,000) (25,000) (50,000) (20,000) (40,000) (30,000) (50,000) 12,000 22,500 1,500 4,000 (2,000) $158,500 $174,500 $ 30,000 $ 50,000 Amount Julio Milania
Chapter10: Deductions And Losses: Certain Itemized Deductions
Section: Chapter Questions
Problem 31P
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