Complete in Excel
Problem 1: Jack and Jill are owners of UpAHill, an S corporation. They own 25 and 75 percent, respectively.
What amount of ordinary income and separately stated items are allocated to them for years 1 and 2 based on the information above?
Complete UpAHill's Form 1120S, Schedule K, for year 1.
Complete Jill's 1120S, Schedule K-1, for year 1.
Problem 2: Assume Jack and Jill, 25 and 75 percent shareholders in UpAHill corporation, have tax bases in their shares at the beginning of year 1 of $24,000 and $56,000, respectively. Also assume no distributions were made. Given the income statement above, what are their tax bases in their shares at the end of year 1?