Hi, I need help with 1125-E form. The total compensation for the workers is 753,000, but I do not understand how to allocate it to each officer. The attachment will give information on the assignment. I only need help with the 1125-E form, thank you!

Celebrity Catering Services, Inc. Rachael Ray, Paula Deen and Gordon Ramsay each own onethird ofthe common stock of Celebrity Catering Services, Inc. (CCSl. CC5 was incorporated on February 2, 2009. It has only one class of stock outstanding and operates as a C corporation for tax purposes. CCS caters to all types of social events. - CC5 is located at 540 Waverly Way Burbank, CA 91501 - Its employer ID is 384743474 - CCS's business activity is catering food services. Its business activity code is 722300. - The shareholders also work as ofcers for the corporation as follows: 0 Rachael is the chief executive officer and president, (55# 231548976}. 0 Paula isthe executive VP and Chief operating ofcer {59098563241}. 0 Gordon is the VP of Finance (SSIIl 879214536}. - All ofcers devote 100% of their time to the business and all of the officers are US citizens. - CC5 uses the accrual method of accounting and has a calendar yearend. - CC5 made four equal quarterly estimated tax payments of $37,000 each. Its tax liability last year was $140,800. If it has overpaid its federal tax liability, CC5 would like to receive a refund. - In the prior year, the company made a large charitable contribution. $45,000 ofthat contribution exceeded the amount deductible and was carried forward to the current year. - CCS paid a dividend of $155,000 to each of its shareholders on December 1. CCS had ample earnings and profits (E&P} to absorb the distribution. Income Statement Income Sales $3,532,000 Sales returns and allowances 35,000 Net sales 3,497,000 Cost of goods sold 1,075,700 [1] Gross profit 2,421,300 Net Loss on Sale of Assets & Investments $1,000 Dividend income 32,000 (2] Interest income 3,200 (3] Total income $2,460,500 Expenses Salaries and wages 952,000 [4] Bad Debt 19,000 Meals 16,000 Entertainment 14,000 Repairs and Maintenance 18,500 Property Taxes 6,200 State Income Tax 20,000 Payroll Taxes 173,200 Charitable Contribution 62,000 Equipment Rent 60,000 Warehouse Rent 125,000 Interest 6,800 [5] Advertising 72,000 Professional Services 32,500 Depreciation 15,200 [6] Employee benefits Programs 69,000 Other Miscellaneous Expenses 28,700 [7] Total expenses 1,690,100 Net income before taxes $770,400 Federal income taxes -163,464 Net income after taxes $606,936 [1] CCS'S inventory-related purchases during the year were $242,000 and direct labor of $855,000. It values its inventory based on cost using FIFO Inventory cost flow method. CCS must use the 263A method for valuing its inventory for tax purposes the beginning balance of 263A adjustment is $12,000 and the ending value is $9,000. The current year additional 5263A costs are $87,000 of the officer's salary. [2] CCS's dividend income came from Sinful Desserts, Inc. (SD) CCS owned 10,000 shares of stock in SD at the beginning of the year this represented 16% of SD's outstanding stock. [3] $1,200 was from a City of Irvine bond that was used to fund public activities (issued in 2006), $1,500 was from an Oceanview City bond used to fund public activities (issued in 2005), $ 1,000 was from a US Treasury Bond and the rest was from a money market account at Bank of America. [4] The officers' salaries included are: Rachael Ray -$325,000; Paula Deen - $ 240,000 and Gordon Ramsey -$275,000 [5] The interest expense was from an ordinary and necessary deductible business loan. [6] None of the depreciation will be claimed on 1125A. The MACRS depreciation has been computed as $ 13, 400 for assets not purchased during the current fiscal year. The straight-line depreciation method is reflected on the financial statements. [7] Includes $4,200 for premiums paid on term life insurance policies for which CCS is the beneficiary. The policies cover Rachael, Paula and Gordon. Also included is $500 in parking tickets. The rest are regular miscellaneous, ordinary and necessary expenses.Balance Sheet Assets 7/1/2018 6/30/19 Cash $408,300 $523,000 Trade and accounts receivables 566,000 468,000 Allowance for Doubtful Accounts 63,000 57,000 [1] Inventories 150,000 171,300 U.S. government bonds 20,000 20,000 State & Local bonds 120,000 120,000 Investment In Stock 354,000 314,000 [2] Prepaid Federal Income Taxes 0 0 Property, plant and equipment 160,000 180,000 [3] Accumulated depreciation -64,000 -69,200 [4] Other assets 25,000 37,600 Total Assets $1,676,300 $1,707,700 Liabilities and Owners' Equity Accounts payable $153,700 $70,312 Income Taxes Payable 37,612 3,469 Deferred Tax Liability 15,371 27,366 Other current liabilities 21,000 21,000 Other Liabilities 43,000 38,000 Capital stock 400,000 400,000 Retained earnings 1,005,617 1,147,553 Total Liabilities and Owners' Equity $1, 676,300 1,707,700 [1] CCS wrote off $26,000 as uncollectible during the year. [2] On October 1, 2018 CCS sold 1,000 shares of SD stock for $42,000. It had originally purchased these shares on April 18, 2010 for $40,000. After the sale CCS owns 14.4 percent of SD. [3] On November 12, 2018 CCS purchased three industrial Hobart mixers for $5,500 each and a Wolf Convection Double Stack Commercial Oven for $17,500. [4] On December 5, 2018 they sold two old mixers that had been fully depreciated for tax purposes but had a book value of $2,000 each. The old mixers had been purchased at $7,000 each and were sold for $500 each