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Julio and Milania are owners of Falcons Corporation, an S corporation. They each own 50...

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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. Falcons Corporation (an S Corporation) Income Statement December 31, Year 1 and Year 2 Year 2 Year 1 Sales revenue 300,eee (40,000) (40, ) (25,000) (20,000) (30, ) $ 430,000 (, ) (80,e00) (50,000) (40,000) (50, ee) Cost of goods sold Salary to owners Julio and Milania Employee wages Depreciation expense Section 179 expense Interest income (related to business) Municipal bond income Government fines 22,500 12,000 1,500 4,000 (2,e00) Overall net income $158,500 $174,500 30,eee 50,000 Distributions 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). Answer is not complete. Amount Julio Milania Ordinary Income Section 179 expense Qualified business income Distributions Nondeductible fines Municipal bond income

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