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Julio and Milania are owners of Falcons Corporation, an Scorporation. They each own 50 percent...

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Accounting

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Julio and Milania are owners of Falcons Corporation, an Scorporation. They each own 50 percent of Falcons Corporation In year 1. Julio and Milania each received distributions of $15.000 from Falcons Corporation Falcons Corporation (ans Corporation) Income Statement December 31, Year 1 and Year 2 Year 1 Sales tevenue $300.000 Coat of goods sold (10,000) Salary to owners Julio and Milana (40.000) ployee wages (25.000) Depreciation expense (20,000) Section 179 expense (30.000) Interest income related to business 12,000 Municipal bond income 1.500 Government fins Overall net income $158.500 Distributions $ 30,000 Year 2 $430,000 (60,000) (B0,000) 50,000) 40,000) 50,000) 22,500 4.000 (2.000) 174,500 $50,000 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 $200,000 of qualified property (unadjusted basis). Amount Rocated to located to Ordinary Income Section 179 expense Qualibed business income Municipal bond income Distributions

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