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). Ordinary Income Section 179 expense Municipal bond income Distributions Qualified business income. llocated wages Unadjusted basis of qualified property Answer is not complete. Amount $ 218,000$ 93,500 15.000 550 12.000 30,000 1.100 24,000 Allocated to Julio $ 70,000 $ 230,000 $ $ 35,000 115,000 Allocated to Milania $ 93,500 15,000 550 12,000 $ 35,000 $ 115,000
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). Ordinary Income Section 179 expense Municipal bond income Distributions Qualified business income. llocated wages Unadjusted basis of qualified property Answer is not complete. Amount $ 218,000$ 93,500 15.000 550 12.000 30,000 1.100 24,000 Allocated to Julio $ 70,000 $ 230,000 $ $ 35,000 115,000 Allocated to Milania $ 93,500 15,000 550 12,000 $ 35,000 $ 115,000
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 33P
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Question
11.
Transcribed Image Text:Jullo and Milania are owners of Falcons Corporation, an S corporation. Each owns 50 percent of Falcons
Corporation. In year 1, Julio and Milania each received distributions of $12,000 from Falcons Corporation.
Falcons Corporation (an S Corporation)
Income Statement
December 31, Year 1 and Year 2
Sales revenue
Cost of goods sold
Salary to owners Julio and Milania
Employee wages
Depreciation expense
Section 179 expense
Interest income (related to business income)
Municipal bond income
Government fines.
Overall net income
Distributions
Ordinary Income
Section 179 expense
Municipal bond income
Distributions
Qualified business income
Allocated wages
Unadjusted basis of qualified property
Answer is not complete.
Allocated to
Julio
Problem 11-52 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).
Amount
$ 218,000 $
30,000
1,100
24,000
Year 1
$ 330,000
(42,000)
(40,000)
(30,000)
(20,000)
(30,000)
12,000
1,100
93,500
15.000
550
12,000
$ 181,100
$ 24,000
8
Allocated to
Milania
93,500
15,000
550
12,000
S
$ 70,000
$
35,000 S
$ 230,000 $ 115,000 $
Year 2
$ 460,000
(65,000)
(80,000)
(60,000)
(40,000)
(50,000)
22,500
3,200
(3,000)
$ 187,780
$ 50,000
35,000
115,000
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