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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 $230,000 of qualified property (unadjusted basis). Ordinary Income Section 179 expense Municipal bond income Distributions Qualified business income. llocated wages Unadjusted basis of qualified property Answer is not complete. Amount $ 218,000$ 93,500 15.000 550 12.000 30,000 1.100 24,000 Allocated to Julio $ 70,000 $ 230,000 $ $ 35,000 115,000 Allocated to Milania $ 93,500 15,000 550 12,000 $ 35,000 $ 115,000

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 $230,000 of qualified property (unadjusted basis). Ordinary Income Section 179 expense Municipal bond income Distributions Qualified business income. llocated wages Unadjusted basis of qualified property Answer is not complete. Amount $ 218,000$ 93,500 15.000 550 12.000 30,000 1.100 24,000 Allocated to Julio $ 70,000 $ 230,000 $ $ 35,000 115,000 Allocated to Milania $ 93,500 15,000 550 12,000 $ 35,000 $ 115,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Jullo and Milania are owners of Falcons Corporation, an S corporation. Each owns 50 percent of Falcons Corporation. In year 1, Julio and Milania each received distributions of $12,000 from Falcons Corporation. Falcons Corporation (an S Corporation) Income Statement December 31, Year 1 and Year 2 Sales revenue Cost of goods sold Salary to owners Julio and Milania Employee wages Depreciation expense Section 179 expense Interest income (related to business income) Municipal bond income Government fines. Overall net income Distributions Ordinary Income Section 179 expense Municipal bond income Distributions Qualified business income Allocated wages Unadjusted basis of qualified property Answer is not complete. Allocated to Julio Problem 11-52 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 $230,000 of qualified property (unadjusted basis). Amount $ 218,000 $ 30,000 1,100 24,000 Year 1 $ 330,000 (42,000) (40,000) (30,000) (20,000) (30,000) 12,000 1,100 93,500 15.000 550 12,000 $ 181,100 $ 24,000 8 Allocated to Milania 93,500 15,000 550 12,000 S $ 70,000 $ 35,000 S $ 230,000 $ 115,000 $ Year 2 $ 460,000 (65,000) (80,000) (60,000) (40,000) (50,000) 22,500 3,200 (3,000) $ 187,780 $ 50,000 35,000 115,000
Transcribed Image Text:Jullo and Milania are owners of Falcons Corporation, an S corporation. Each owns 50 percent of Falcons Corporation. In year 1, Julio and Milania each received distributions of $12,000 from Falcons Corporation. Falcons Corporation (an S Corporation) Income Statement December 31, Year 1 and Year 2 Sales revenue Cost of goods sold Salary to owners Julio and Milania Employee wages Depreciation expense Section 179 expense Interest income (related to business income) Municipal bond income Government fines. Overall net income Distributions Ordinary Income Section 179 expense Municipal bond income Distributions Qualified business income Allocated wages Unadjusted basis of qualified property Answer is not complete. Allocated to Julio Problem 11-52 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 $230,000 of qualified property (unadjusted basis). Amount $ 218,000 $ 30,000 1,100 24,000 Year 1 $ 330,000 (42,000) (40,000) (30,000) (20,000) (30,000) 12,000 1,100 93,500 15.000 550 12,000 $ 181,100 $ 24,000 8 Allocated to Milania 93,500 15,000 550 12,000 S $ 70,000 $ 35,000 S $ 230,000 $ 115,000 $ Year 2 $ 460,000 (65,000) (80,000) (60,000) (40,000) (50,000) 22,500 3,200 (3,000) $ 187,780 $ 50,000 35,000 115,000
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