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.

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.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 1DQ

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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 Cost of goods sold Salary to owners Jack and Jill Employee wages Depreciation expense Miscellaneous expenses. Interest income (related to business) Qualified dividend income Overall net income Ordinary income Allocated wages Unadjusted basis of qualified property Year 1 $ 175,000 (60,000) (40,000) 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. Year 1 (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 Jack Year 2 Year 1 Jill Year 2 b. Complete UpAHill's Form 1120-S, Schedule K, for year 1. Complete Jill's Form 1120-S Schedule K for…
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.
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 Cost of goods sold Salary to owners Jack and Jill Employee wages Depreciation expense Miscellaneous expenses Interest income (related to business) Qualified dividend income Overall net income Ordinary income Dividend income Interest income Allocated wages Unadjusted basis of qualified property 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. $ $ Year 1 Year 2 $ 310,000 $ 175,000 (60,000) (85,000) (40,000) (50,000) (15,000) (20,000) (10,000) (15,000) (9,000) 2,500 1,000 $ 45,000 $ 134,500 Answer is complete but not entirely correct. Jack Jill $ (7,500) 2,000 500 44,500 $ $ 25 × $ $ 11,125 $ Year 1 Year 2…
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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 of Falcons Corporation. In year 1, Julio and Milania each received distributions of $12,000 from Falcons Corporation. Sales revenue Cost of goods sold Falcons Corporation (an S Corporation) Income Statement December 31, Year 1 and Year 2 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 Amount Year 1 $ 335,000 (42,000) (40,000) (30,000) (20,000) (30,000) 12,000 1,808 Allocated to Julio 0 $ 186,800 $ 24,000 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 $240,000 of qualified property (unadjusted basis). Year 2 $ 465,000…
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Julio and Milania are owners of Falcons Corporation, an S corporation. They each own 50 percent of Falcons Corporation. In year 2, Julio and Milania each received distributions of $25,000 from Falcons Corporation. Sales revenue Cost of goods sold Falcons Corporation (an S Corporation) Income Statement December 31, Year 1 and Year 2 Salary to owners Julio and Milania Employee wages Depreciation expense Section 179 expense Interest income. Municipal bond income Government fines Overall net income Distributions Ordinary Income Year 1 Year 2 $300,000 $430,000 (40,000) (60,000) (40,000) (80,000) (50,000) (25,000) (20,000) (40,000) (30,000) (50,000) 12,000 22,500 1,500 0 Amount a. What amount of ordinary income and separately stated items are allocated to them for year 2 based on the information above? 4,000 (2,000) $158,500 $174,500 $ 30,000 $ 50,000 Julio Milania
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