AutoSave OFF Home Insert Draw Page Layout Formulas Data Review View Tell me G Calibri (Body) 11 A A v Paste BI U v A Wrap Text General Merge & Center $%9 +0 DCD Share Comments 1 7 Conditional Format Formatting as Table Styles Cell Insert Delete Format v Sort & Filter Find & Select Analyze Data N12 AB C D E F G H J K M N 0 P Q R S T U V W 1 2019 Information 3 4 5 Facts: Cara Siler, Janna Funk, and Valerie Cloward each own one-third of the common stock of Blue Catering Services Inc. (BCS). BCS was incorporated on February 4, 2010. It has only one class of stock outstanding and operates as a C corporation for tax purposes. BCS caters all types of social events throughout southern California. BCS's Employer Identification Number is 38-4743474. BCS's business activity is catering food and services. Its business activity code is 722300. The shareholders also work as officers for the corporation as follows: . Cara is the chief executive officer and president (Social Security number 231-54-8976). Janna is the executive vice president and chief operating officer (Social Security number 798-56-3241). 6 7 BCS is located at 540 Waverly Way, San Diego, California 92101. 8 9 10 11 12 13 14 15 16 17 18 BCS uses the accrual method of accounting and has a calendar year-end. 19 20 21 22 23 24 NOTES: Valerie is the vice president of finance (Social Security number 879-21-4536). All officers devote 100 percent of their time to the business and all officers are U.S. citizens. BCS made four equal estimated tax payments of $10,000 each. Its tax liability last year was $70,000. If it has overpaid its federal tax liability, BCS would like to receive a refund. BCS paid a dividend of $30,000 to its shareholders on November 1. BCS had ample earnings and profits (E&P) to absorb the distribution. 25 1 BCS's inventory-related purchases during 2019 were $360,000. 27 28 2 Of the $10,000 interest income, $1,250 was from a City of Irvine bond issued in 2015, $1,750) was from an 29 30 Oceanside city bond issued in 2014, $1,000 was from a U.S. Treasury bond, and the remaining $6,000 was from a money market account. 31 3 BCS's dividend income came from Clever Cakes Inc. (CC). BCS owned 10,000 shares of the stock in Clever Cakes at the beginning of the year. This represented 10% of CC outstanding stock. 32 33 34 4 On October 1, 2019, BCS sold 1,000 shares of its CC stock for $25,000. It had originally purchased these shares an April 18. 2013. for $40.000. After the sale. BCS owned 9% af CC. 35 Information Balance Sheets Ready Accessibility: Investigate Income Statement + 120%