Required information [The following information applies to the questions displayed below.] 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 Year 1 $ 175,000 Year 2 $ 310,000 Cost of goods sold Salary to owners Jack and Jill Employee wages Depreciation expense (60,000) (85,000) (40,000) (50,000) (15,000) (20,000) (10,000) (15,000) Miscellaneous expenses Interest income (unrelated to business) Qualified dividend income Overall net income (7,500) (9,000) 2,000 500 2,500 1,000 $ 45,000 $ 134,500 a. What amount of ordinary income and separately stated items are allocated to them for years 1 and 2 above? Assume that UpAHill Corporation has $100,000 of qualified property (unadjusted basis) in both Ordinary income Qualified business income Interest income Dividend income Allocated wages Unadjusted basis of qualified property Answer is not complete. Jack Year 1 Year 2 $ 22,625 $ 33,375 X 11,125 $ 33,375 Jill Year 1 Year 2
Required information [The following information applies to the questions displayed below.] 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 Year 1 $ 175,000 Year 2 $ 310,000 Cost of goods sold Salary to owners Jack and Jill Employee wages Depreciation expense (60,000) (85,000) (40,000) (50,000) (15,000) (20,000) (10,000) (15,000) Miscellaneous expenses Interest income (unrelated to business) Qualified dividend income Overall net income (7,500) (9,000) 2,000 500 2,500 1,000 $ 45,000 $ 134,500 a. What amount of ordinary income and separately stated items are allocated to them for years 1 and 2 above? Assume that UpAHill Corporation has $100,000 of qualified property (unadjusted basis) in both Ordinary income Qualified business income Interest income Dividend income Allocated wages Unadjusted basis of qualified property Answer is not complete. Jack Year 1 Year 2 $ 22,625 $ 33,375 X 11,125 $ 33,375 Jill Year 1 Year 2
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter5: Business Deductions
Section: Chapter Questions
Problem 2BCRQ
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Question
Vikram Bhai
![Required information
[The following information applies to the questions displayed below.]
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
Year 1
$ 175,000
Year 2
$ 310,000
Cost of goods sold
Salary to owners Jack and Jill
Employee wages
Depreciation expense
(60,000)
(85,000)
(40,000)
(50,000)
(15,000)
(20,000)
(10,000)
(15,000)
Miscellaneous expenses
Interest income (unrelated to business)
Qualified dividend income
Overall net income
(7,500)
(9,000)
2,000
500
2,500
1,000
$ 45,000
$ 134,500
a. What amount of ordinary income and separately stated items are allocated to them for years 1 and 2
above? Assume that UpAHill Corporation has $100,000 of qualified property (unadjusted basis) in both
Ordinary income
Qualified business income
Interest income
Dividend income
Allocated wages
Unadjusted basis of qualified property
Answer is not complete.
Jack
Year 1
Year 2
$ 22,625 $ 33,375 X
11,125 $ 33,375
Jill
Year 1
Year 2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd40085e2-0f5d-4fae-91f1-e8a41165fb81%2F78277572-c3eb-4f4f-b268-674c433388e3%2Fxmhp71h_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
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
Year 1
$ 175,000
Year 2
$ 310,000
Cost of goods sold
Salary to owners Jack and Jill
Employee wages
Depreciation expense
(60,000)
(85,000)
(40,000)
(50,000)
(15,000)
(20,000)
(10,000)
(15,000)
Miscellaneous expenses
Interest income (unrelated to business)
Qualified dividend income
Overall net income
(7,500)
(9,000)
2,000
500
2,500
1,000
$ 45,000
$ 134,500
a. What amount of ordinary income and separately stated items are allocated to them for years 1 and 2
above? Assume that UpAHill Corporation has $100,000 of qualified property (unadjusted basis) in both
Ordinary income
Qualified business income
Interest income
Dividend income
Allocated wages
Unadjusted basis of qualified property
Answer is not complete.
Jack
Year 1
Year 2
$ 22,625 $ 33,375 X
11,125 $ 33,375
Jill
Year 1
Year 2
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