[The following information applies to the questions displayed below.] Julio and Milania are owners of Falcons Corporation, an S corporation. Each owns 50 percent of Falcons Corporation. In year 1, Jullo and Milania each received distributions of $12,000 from Falcons Corporation. Sales revenue Cost of goods sold Salary to owners Julio and Milania Employee wagen Depreciation expense Section 179 expense Falcons Corporation (an & Corporation) Income Statement December 31, Year 1 and Year 2 Interest income (related to business income) Municipal bond income. Government fines Overall net income Distributions Ordinary Income Amount Year 11 $ 330,000 (42,000) (40,000) (30,000) (20,000) Allocated to Julio (30,000) 12,000 1,100 0 $ 181,100 $ 24,000 Problem 22-52 Part a (Algo) a. What amount of ordinary income and separately stated items are allocated to them for year 1 based on the information above? Assume that Falcons Corporation has $230,000 of qualified property (unadjusted basis). Year 2 $ 460,000 (65,000) (80,000) (60,000) (40,000) (50,000) Allocated to Milania 22,500 3,200 (3,000) $ 187,700 $ 50,000
[The following information applies to the questions displayed below.] Julio and Milania are owners of Falcons Corporation, an S corporation. Each owns 50 percent of Falcons Corporation. In year 1, Jullo and Milania each received distributions of $12,000 from Falcons Corporation. Sales revenue Cost of goods sold Salary to owners Julio and Milania Employee wagen Depreciation expense Section 179 expense Falcons Corporation (an & Corporation) Income Statement December 31, Year 1 and Year 2 Interest income (related to business income) Municipal bond income. Government fines Overall net income Distributions Ordinary Income Amount Year 11 $ 330,000 (42,000) (40,000) (30,000) (20,000) Allocated to Julio (30,000) 12,000 1,100 0 $ 181,100 $ 24,000 Problem 22-52 Part a (Algo) a. What amount of ordinary income and separately stated items are allocated to them for year 1 based on the information above? Assume that Falcons Corporation has $230,000 of qualified property (unadjusted basis). Year 2 $ 460,000 (65,000) (80,000) (60,000) (40,000) (50,000) Allocated to Milania 22,500 3,200 (3,000) $ 187,700 $ 50,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![[The following information applies to the questions displayed below.]
Julio and Milania are owners of Falcons Corporation, an S corporation. Each owns 50 percent of Falcons Corporation. In
year 1, Jullo and Milanla each received distributions of $12,000 from Falcons Corporation.
Sales revenue
Cost of goods sold
Salary to owners Julio and Milania
Employee wages
Falcons Corporation (an S Corporation)
Income Statement
December 31, Year 1 and Year 2
Depreciation expense
Section 179 expense
Interest income (related to business income)
Municipal bond income
Government fines
Overall net income
Distributions
Ordinary Income
Amount
Year 1
$ 330,000
(42,000)
(40,000)
(30,000)
(20,000)
(30,000)
12,000
1,100
0
Allocated to
Julio
$ 181,100
$ 24,000
Problem 22-52 Parta (Algo)
a. What amount of ordinary income and separately stated items are allocated to them for year 1 based on the information above?
Assume that Falcons Corporation has $230,000 of qualified property (unadjusted basis).
Year 2
$ 460,000
(65,000)
(80,000)
(60,000)
Allocated to
Milania
(40,000)
(50,000)
22,500
3,200
(3,000)
$ 187,700
$ 50,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faaae2147-9264-47d1-984e-b2380e2f6ae6%2F991b69b5-562e-4e50-94ea-da906c34a11e%2F57b5v2l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[The following information applies to the questions displayed below.]
Julio and Milania are owners of Falcons Corporation, an S corporation. Each owns 50 percent of Falcons Corporation. In
year 1, Jullo and Milanla each received distributions of $12,000 from Falcons Corporation.
Sales revenue
Cost of goods sold
Salary to owners Julio and Milania
Employee wages
Falcons Corporation (an S Corporation)
Income Statement
December 31, Year 1 and Year 2
Depreciation expense
Section 179 expense
Interest income (related to business income)
Municipal bond income
Government fines
Overall net income
Distributions
Ordinary Income
Amount
Year 1
$ 330,000
(42,000)
(40,000)
(30,000)
(20,000)
(30,000)
12,000
1,100
0
Allocated to
Julio
$ 181,100
$ 24,000
Problem 22-52 Parta (Algo)
a. What amount of ordinary income and separately stated items are allocated to them for year 1 based on the information above?
Assume that Falcons Corporation has $230,000 of qualified property (unadjusted basis).
Year 2
$ 460,000
(65,000)
(80,000)
(60,000)
Allocated to
Milania
(40,000)
(50,000)
22,500
3,200
(3,000)
$ 187,700
$ 50,000
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