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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 (related to business) Qualified dividend income Overall net income Ordinary income Interest income Dividend income 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. $ $ Is Year 1 Jack Year 1 Year 2 $ 310,000 $ 175,000 (60,000) (85,000) (40,000) (50,000) (15,000) (20,000) (10,000) (15,000) (7,500) (9,000) 2,000 2,500 500 1,000 $ 45,000 $ 134,500 10,625 X S 500 x S 125 S Year 2 32,750 625 * $ S 250 S Year 1 Jill 31,875 X S 1,500 x $ 375 S Year 2 98,250 x 1,875 750

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 (related to business) Qualified dividend income Overall net income Ordinary income Interest income Dividend income 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. $ $ Is Year 1 Jack Year 1 Year 2 $ 310,000 $ 175,000 (60,000) (85,000) (40,000) (50,000) (15,000) (20,000) (10,000) (15,000) (7,500) (9,000) 2,000 2,500 500 1,000 $ 45,000 $ 134,500 10,625 X S 500 x S 125 S Year 2 32,750 625 * $ S 250 S Year 1 Jill 31,875 X S 1,500 x $ 375 S Year 2 98,250 x 1,875 750

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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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 (related to business) Qualified dividend income Overall net income Ordinary income Interest income Dividend income 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. $ S S Year 1 Jack Year 1 Year 2 $ 175,000 (60,000) $ 310,000 (85,000) (40,000) (50,000) (15,000) (20,000) (10,000) (15,000) (7,500) (9,000) 2,500 2,000 500 1,000 $ 45,000 $ 134,500 10,625 X S 500 X S 125 S Year 2 32,750 625 250 Jill Year 1 S 31,875 X S $ 1,500 × $ 375 S S Year 2 98,250 X 1,875 750
Transcribed Image Text: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 (related to business) Qualified dividend income Overall net income Ordinary income Interest income Dividend income 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. $ S S Year 1 Jack Year 1 Year 2 $ 175,000 (60,000) $ 310,000 (85,000) (40,000) (50,000) (15,000) (20,000) (10,000) (15,000) (7,500) (9,000) 2,500 2,000 500 1,000 $ 45,000 $ 134,500 10,625 X S 500 X S 125 S Year 2 32,750 625 250 Jill Year 1 S 31,875 X S $ 1,500 × $ 375 S S Year 2 98,250 X 1,875 750
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