Jack and Jill Accounting Help needed today.
tarea1973
yo_part_week_6.doc|
UpAHill Corporation (an S Corporation) |
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Income Statement |
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December 31, Year 1 and Year 2 |
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Year 1 |
Year 2 |
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Sales revenue |
$175,000 |
$310,000 |
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Cost of goods sold |
(60,000) |
(85,000) |
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Salary to owners Jack and Jill |
(40,000) |
(50,000) |
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Employee wages |
(15,000) |
(20,000) |
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Depreciation expense |
(10,000) |
(15,000) |
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Miscellaneous expenses |
(7,500) |
(9,000) |
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Interest income |
2,000 |
2,500 |
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Dividend income |
500 |
1,000 |
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Overall net income |
$ 45,000 |
$134,500 |
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50. (LO3) Jack and Jill are owners of UpAHill, an S corporation. They own 25 and 75 percent, respectively.
a. What amount of ordinary income and separately stated items are allocated to them for years 1 and 2 based on the information above?
b. Complete UpAHill’s Form 1120S, Schedule K, for year 1.
c. Complete Jill’s 1120S, Schedule K-1, for year 1.
