Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. julio and milania are owners of falcons corporatio

Julio and Milania are owners of Falcons Corporation, an S...

60.1K

Verified Solution

Question

Accounting

image

image

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. Falcons Corporation (an s Corporation) Income Statement December 31, Year 1 and Year 2 Year 1 Sales revenue $300,000 Cost of goods sold (40,000) Salary to owners Julio and Milania (40,000) Employee wages (25,000) Depreciation expense (20,000) Section 179 expense (30,000) Interest income (related to 12,000 business) Municipal bond income 1,500 Government fines Overall net income $ 158,500 Year 2 $430,000 (60,000) (80,000) (50,000) (40,000) (50,000) 22,500 4,000 (2,000) $174,500 Distributions $ 30,000 $ 50,000 Problem 22-53 Part a a. What amount of ordinary income and separately stated items are allocated to them for year 2 based on the information above? Assume that Falcons Corporation has $200,000 of qualified property (unadjusted basis). Amount Allocated to Julio Allocated to Milania Ordinary Income

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

FREE CASH FLOW Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for...

Basic Math
1.2K views

proof a circle is divided into n congruent arcs (n ?? 3), the tangents drawn at...

Biology
1.2K views

Explain in detail how two-component systems detect an environmental signal and mediate a change in transcription...

Chemistry
1.2K views

Heavy metal azides, which are salts of hydrazoic acid, HN3, are used as explosive detonators. A...

Psychology
1.2K views

1. Provide a general definition for the concept of sensory adaptation. If you were a marketing...

Electrical Engineering
1.2K views

How do an Electrical Engineering student need Calculus II ? Find an Application that relates to...

Basic Math
1.2K views

How to do this in ti84 plus calculator in shortest possible way The annual per capita consumption...

Statistics
1.2K views

Based on the scatter plot choose the best estimate of the con 00 9 00...

Accounting
1.2K views

Consider a payment of $850 due 4 months from today. Find the equivalent payment at...

Accounting
1.2K views

Northwest Gift Shop, a retail business, started business on April 29, 2019. It keeps a...

Accounting
1.2K views

2. The DL budget, S&A budget, unit cost and budgeted income statement (5pts): Petrini Corporation...

Finance
1.2K views

True (T) or False (F): 44 points (4 points each). Please use "T" or "F"...