Jack and Jill are owners of UpAHill, an S Corporation. They own 25 and 75 percent, respectively. UpaHill Corporation (an 5 Corporation) Income Statement December 31, Year 1 and Year 21 Sales revenue Cost of goods sold Salary to owners Jack and 3111 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 Problem 11-50 Part a (Static) e. 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.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
Ordinary income
Qualified business income
Interest income
Dividend income
Allocated wages
Unadjusted basis of qualified property
Year 11
Jack
Year 2
Year 1
Jill
Year 2
Transcribed Image Text: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 Ordinary income Qualified business income Interest income Dividend income Allocated wages Unadjusted basis of qualified property Year 11 Jack Year 2 Year 1 Jill Year 2
Jack and Jill are owners of UpAHill, an S Corporation. They own 25 and 75 percent, respectively.
UpAHill Corporation (an 5 Corporation)
Income Statement
December 31, Year 1 and Year 2
Sales revenue
Cost of goods sold
Salary to owners Jack and 3111
teployee 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
4
Problem 11-50 Part a (Static)
e. 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.
Transcribed Image Text:Jack and Jill are owners of UpAHill, an S Corporation. They own 25 and 75 percent, respectively. UpAHill Corporation (an 5 Corporation) Income Statement December 31, Year 1 and Year 2 Sales revenue Cost of goods sold Salary to owners Jack and 3111 teployee 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 4 Problem 11-50 Part a (Static) e. 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.
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