dont uplode image in answer Jack and Jill are owners of UpAHill, an S Corporation. They own 25 and 75 percent, respectively.UPAHill Corporation (an S Corporation)Income StatementDecember 31, Year 1 and Year 2Sales revenueCost of goods soldSalary to owners Jack and JillEmployee wagesDepreciation expenseMiscellaneous expensesInterest income (unrelated to business)Qualified dividend incomeOverall net incomeOrdinary incomeQualified business incomeInterest incomeDividend incomeAllocated wagesUnadjusted basis of qualified propertyProblem 22-50 Part a (Static)a. What amount of ordinary income and separately stated items are allocated to them for years 1 and 2 based on the informationabove? Assume that UpAHill Corporation has $100,000 of qualified property (unadjusted basis) in both years.Year 1JackYear 1$ 175,000(60,000)(40,000)(15,000)(10,000)(7,500)2,000500Year 2Year 2$ 310,000(85,000)(50,000)(20,000)(15,000)(9,000)2,5001,000$ 45,000 $ 134,500Year 1JillYear 2

Ordinary income includes all those incomes that are taxable at ordinary rates such as salary,…

Jack and Jill are owners of UpAHill, an S Corporation. They own 25 and 75 percent, respectively. UpAHill Corporation (an S Corporation) Income Statement December 31, Year 1 and Year 2 Sales revenue Cost of goods sold Salary to owners Jack and Jill Employee wages Depreciation expense. Miscellaneous expenses Interest income (unrelated to business) Qualified dividend income Overall net income Year 1 $ 175,000 (60,000) (40,000) (15,000) (10,000) (7,500) 2,000 500 $ 45,000 Year 2 $ 310,000 (85,000) (50,000) (20,000) (15,000) (9,000) 2,500 1,000 $ 134,500

Jack and Jill are owners of UpAHill, an S Corporation. They own 25 and 75 percent, respectively. UpAHill Corporation (an S Corporation) Income Statement December 31, Year 1 and Year 2 Sales revenue Cost of goods sold Salary to owners Jack and Jill Employee wages Depreciation expense. Miscellaneous expenses Interest income (unrelated to business) Qualified dividend income Overall net income Year 1 $ 175,000 (60,000) (40,000) (15,000) (10,000) (7,500) 2,000 500 $ 45,000 Year 2 $ 310,000 (85,000) (50,000) (20,000) (15,000) (9,000) 2,500 1,000 $ 134,500

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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