I need help calculating Allocated WagesNote:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure. !Required information[The following information applies to the questions displayed below.]Julio and Milania are owners of Falcons Corporation, an S corporation. Each owns 50 percent ofFalcons Corporation. In year 1, Julio and Milania each received distributions of $10,000 fromFalcons Corporation.Sales revenueCost of goods soldFalcons Corporation (an S Corporation)Income StatementDecember 31, Year 1 and Year 2Salary to owners Julio and MilaniaEmployee wagesDepreciation expenseSection 179 expenseInterest income (related to business income)Municipal bond incomeGovernment finesOverall net incomeDistributionsYear 1$ 335,000(42,000)Year 2$ 465,000(65,000)(40,000)(80,000)(30,000)(60,000)(20,000)(40,000)(30,000)(50,000)10,0001,7000$ 184,700$ 20,00018,5004,400(3,000)$ 189,900$ 50,000 a. What amount of ordinary income and separately stated items are allocated to them for year 1 based on theinformation above? Assume that Falcons Corporation has $230,000 of qualified property (unadjusted basis).Ordinary IncomeSection 179 expenseQualified business incomeMunicipal bond incomeDistributions× Answer is not complete.AmountAllocated to Allocated toJulioMilania$ 106,500 $ 106,500$ 213,00030,000213,00015,000106,50015,000106,5001,700850850$ 20,000$ 10,000$10,000Allocated wagesUnadjusted basis of qualified property$ 230,000$ 115,000$115,000

Ordinary Income -Ordinary income is the amount received from ongoing operations prior to income…

Sales revenue Falcons Corporation (an S Corporation) Income Statement December 31, Year 1 and Year 2 Year 1 $ 335,000 Year 2 $ 465,000 Cost of goods sold (42,000) (65,000) Salary to owners Julio and Milania (40,000) (80,000) Employee wages (30,000) (60,000) Depreciation expense (20,000) (40,000) Section 179 expense (30,000) (50,000) Interest income (related to business income) 10,000 18,500 Municipal bond income 1,700 Government fines 0 4,400 (3,000)

Sales revenue Falcons Corporation (an S Corporation) Income Statement December 31, Year 1 and Year 2 Year 1 $ 335,000 Year 2 $ 465,000 Cost of goods sold (42,000) (65,000) Salary to owners Julio and Milania (40,000) (80,000) Employee wages (30,000) (60,000) Depreciation expense (20,000) (40,000) Section 179 expense (30,000) (50,000) Interest income (related to business income) 10,000 18,500 Municipal bond income 1,700 Government fines 0 4,400 (3,000)

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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