Microsoft Word - Corp Tax Return-1158.docx

Required:

• Complete Celebrity Catering Service Inc.?s (CCS) 2012 Form 1120 and all related schedules. Be sure to attach schedules for any line item which indicates one is required on the 1120.
• FORM 4562 is not required. (Do not complete Form 4562 [depreciation calculation] since you do not have all the information).
• If any information is missing, use reasonable assumptions to fill in the gaps and list those assumptions as an attachment.
• The forms schedules and instructions can be found at www.irs.gov and download the necessary forms.

CCS Corporate Tax Return Problem Rachael Ray, Paula Deen and Gordon Ramsay each own one-third of the common stock of Celebrity Catering Services, Inc. (CCS). CCS is 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. CCS is located at 540 Waverly Way Burbank, CA 91501 Its employer ID is 38-4743474 CCS's business activity is catering food services. Its business activity code is 722300. The shareholders also work as officers for the corporation as follows: o Rachael is the chief executive officer and president, (SS# 231-54-8976). Her salary this year is $200,000. o Paula is the executive VP and Chief operating officer (SS#798-56-3241). Her salary this year is $140,000. o Gordon is the VP of Finance (SS# 879-21-4536). His salary this year is $130,000. All officers devote 100% of their time to the business and all of the officers are US citizens. CCS uses the accrual method of accounting and has a calendar year-end. CCS made four equal quarterly estimated tax payments of $12,000 each. Its tax liability last year was $70,000. If it has overpaid its federal tax liability, CCS would like to receive a refund. CCS paid a dividend of $30,000 to its shareholders on November 1. CCS had ample earnings and profits (E&P) to absorb the distribution. 1 | P a g e The following is CCS's income statement for 2014: Income Statement Income Sales Sales returns and allowances Net sales Cost of goods sold Gross profit Capital loss Dividend income Interest income Total income Expenses Salaries-officers Salaries and wages - other Bad Debt Meals & Entertainment Repairs and Maintenance Property Taxes State Income Tax Payroll Taxes Equipment Rent Interest Advertising Professional Services Supplies Depreciation Employee benefits Programs Other Miscellaneous Expenses Total expenses Net income before taxes Federal income taxes Net income after taxes $470,000 525,000 15,000 24,000 6,000 13,000 23,000 75,000 20,000 5,000 32,000 15,000 4,000 10,000 32,000 14,000 $1,800,000 (5,000) 1,795,000 350,000 1,445,000 ($22,000) 25,000 12,000 $1,460,000 1.283,000 $177,000 [50,000] $127,000 Notes: 1. CCS'S inventory-related purchases during 2014 were $360,000. It values its inventory based on cost using FIFO inventory cost flow method. Assume the rules of 263A do not apply to CCS. 2. Of the $12,000 interest income, $2,200 was from a City of Irvine bond that was used to fund public activities (issued in 2006), $1,900 was from an Oceanside City bond used to fund public activities (issued in 2005), $1,500 was from a US Treasury Bond and the rest was from a money market account. 3. CCS's dividend income came from Sinful Desserts, Inc. (SD) CCS owned 10,000 shares of stock in CC at the beginning of the year this represented 25% of SD's outstanding stock. 2 | P a g e 4. On October 1, 2014 CCS sold 1,000 shares of SD stock for $25,000. It had originally purchased these shares on April 18, 2009 for $47,000. After the sale CCS owns 22.5 percent of SD. 5. CCS wrote off $32,000 in accounts receivable as uncollectible during the year. 6. CCS regular tax depreciation was $28,000. None of the depreciation could be claimed on 1125A. 7. The $5,000 interest expense was from a business loan. 8. Other expenses include $6,000 for premiums paid on term life insurance policies for which CCS is the beneficiary. The policies cover Rachael, Paula and Gordon. The rest are miscellaneous ordinary and necessary expenses. Balance Sheet Assets Cash Trade and accounts receivables Allowance for Doubtful Accounts Inventories U.S. government bonds State & Local bonds Investment In Stock Prepaid federal income taxes Property, plant and equipment Accumulated depreciation Other assets Total Assets Liabilities and Owners' Equity Accounts payable Other current liabilities Other Liabilities Capital stock Retained earnings Total Liabilities and Owners' Equity 1/1/2014 $180,000 560,000 (60,000) 140,000 20,000 120,000 400,000 0 140,000 (50,000) 20.000 $1,470,000 $280,000 20,000 40,000 400,000 730,000 $1,470,000 12/31/14 $185,000 570,000 (43,000) 150,000 20,000 120,000 353,000 10,107 160,000 (60,000) 45,893 $1,511,000 $240,000 21,000 23,000 400,000 827,000 1,511,000 Required: Complete Celebrity Catering Service Inc.'s (CCS) 2012 Form 1120 and all related schedules. Be sure to attach schedules for any line item which indicates one is required on the 1120. FORM 4562 is not required. (Do not complete Form 4562 [depreciation calculation] since you do not have all the information). If any information is missing, use reasonable assumptions to fill in the gaps and list those assumptions as an attachment. The forms schedules and instructions can be found at www.irs.gov and download the necessary forms. 3 | P a g e 1120 U.S. Corporation Income Tax Return Form Department of the Treasury Internal Revenue Service A Check if: 1a Consolidated return (attach Form 851) . b Lifeonlife consolidated return . . . 2 Personal holding co. (attach Sch. PH) . . OMB No. 1545-0123 , 2014, ending December 31 , 20 2014 14 Information about Form 1120 and its separate instructions is at www.irs.gov/form1120. B Employer identification number Name TYPE OR PRINT C Date incorporated Number, street, and room or suite no. If a P.O. box, see instructions. 540 Waverly Way February 2, 2009 D Total assets (see instructions) City or town, state, or province, country and ZIP or foreign postal code Burbank, CA 91501 . 4 Schedule M-3 attached 38-4743474 Celebrity Catering Services, Inc. 3 Personal service corp. (see instructions) . January 1 For calendar year 2014 or tax year beginning E Check if: (1) 1,511,000 $ (2) Initial return (3) Final return (4) Name change 00 Address change 00 . . . . . . . . . . . . 1a 1,800,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1b . . . . 5,000 2 3 4 Returns and allowances . . . . . Balance. Subtract line 1b from line 1a . Cost of goods sold (attach Form 1125-A) Gross profit. Subtract line 2 from line 1c Dividends (Schedule C, line 19) . . . . . . . . . . . . . . . . . . . . . . . . . . 1c 2 3 4 1,795,000 350,000 1,445,000 25,000 00 00 00 00 5 6 7 Interest . . Gross rents . Gross royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 6 7 6,400 0 0 00 00 00 8 9 10 Capital gain net income (attach Schedule D (Form 1120)) . . . . Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797) Other income (see instructionsattach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 9 10 (22,000) 0 0 00 00 00 11 12 13 Total income. Add lines 3 through 10 . . . . . . . . . Compensation of officers (see instructionsattach Form 1125-E) . . . . . . . . . . . . . . . . . . . . . . . . Salaries and wages (less employment credits) . . . . . . . . . . . . . . . . . . 11 12 13 1,454,400 470,000 525,000 00 00 00 14 15 16 Repairs and maintenance Bad debts . . . . . Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 15 16 6,000 32,000 20,000 00 00 00 17 18 19 Taxes and licenses . . Interest . . . . . Charitable contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 18 19 111,000 5,000 25,000 00 00 00 20 21 22 Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562) . Depletion . . . . . . . . . . . . . . . . . . . . . . . . . . . . Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 21 22 28,000 0 32,000 00 00 00 23 24 25 Pension, profit-sharing, etc., plans . . . . . . . . Employee benefit programs . . . . . . . . . . Domestic production activities deduction (attach Form 8903) . . . . 23 24 25 0 32,000 0 00 00 00 26 27 28 Other deductions (attach statement) . . . . . . . . . . . . . . . . . . . . . Total deductions. Add lines 12 through 26 . . . . . . . . . . . . . . . . . . . Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11. 0 00 Net operating loss deduction (see instructions) . . . . . . . . . . 29a 17,500 00 Special deductions (Schedule C, line 20) . . . . . . . . . . . . 29b 26 27 28 39,000 1,325,000 129,400 00 00 00 Add lines 29a and 29b . . . . . . . . . . . . . Taxable income. Subtract line 29c from line 28 (see instructions) 1a Tax, Refundable Credits, and Payments Deductions (See instructions for limitations on deductions.) Income b c 29a b c 30 31 32 33 34 35 36 Sign Here Gross receipts or sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00 . . . . . . . . . . . . 29c 30 17,500 111,900 00 00 Total tax (Schedule J, Part I, line 11) . . . . . . . . . . . . . . . . Total payments and refundable credits (Schedule J, Part II, line 21) . . . . . . . Estimated tax penalty (see instructions). Check if Form 2220 is attached . . . . . Amount owed. If line 32 is smaller than the total of lines 31 and 33, enter amount owed . . . . . . . . . . . . . . . . . . 31 32 33 34 50,000 48,000 0 2,000 00 00 00 00 Overpayment. If line 32 is larger than the total of lines 31 and 33, enter amount overpaid Enter amount from line 35 you want: Credited to 2015 estimated tax . . . . . Refunded 35 36 0 0 00 00 . . . . . . . . . . . . Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Signature of officer Paid Preparer Use Only Print/Type preparer's name Date Preparer's signature May the IRS discuss this return with the preparer shown below (see instructions)? Yes No Title Date Firm's name PTIN Firm's EIN Firm's address For Paperwork Reduction Act Notice, see separate instructions. Check if self-employed Phone no. Cat. No. 11450Q Form 1120 (2014) Page 2 Form 1120 (2014) Schedule C Dividends and Special Deductions (see instructions) (a) Dividends received 1 Dividends from less-than-20%-owned domestic corporations (other than debt-financed stock) . . . . . . . . . . . . . . . . . . . . . . . . 2 (b) % Dividends from 20%-or-more-owned domestic corporations (other than debt-financed stock) . . . . . . . . . . . . . . . . . . . . . . . . 25,000 70 (c) Special deductions (a) (b) 17,500 80 see instructions 3 Dividends on debt-financed stock of domestic and foreign corporations . . . . . 4 Dividends on certain preferred stock of less-than-20%-owned public utilities . . . 42 5 Dividends on certain preferred stock of 20%-or-more-owned public utilities . . . . 48 6 Dividends from less-than-20%-owned foreign corporations and certain FSCs . . . 70 7 Dividends from 20%-or-more-owned foreign corporations and certain FSCs . . . 80 8 Dividends from wholly owned foreign subsidiaries 100 9 Total. Add lines 1 through 8. See instructions for limitation 10 . . . . . . . . . . . . . . . . . . . Dividends from domestic corporations received by a small business investment company operating under the Small Business Investment Act of 1958 . . . . . 100 11 Dividends from affiliated group members . . . . . . . . . . . . . . 100 12 Dividends from certain FSCs . . . . . . . . . . . . . 100 13 Dividends from foreign corporations not included on lines 3, 6, 7, 8, 11, or 12 . . . 14 Income from controlled foreign corporations under subpart F (attach Form(s) 5471) 15 Foreign dividend gross-up . . . . . . . 16 IC-DISC and former DISC dividends not included on lines 1, 2, or 3 . . . . . . 17 Other dividends . . . . . . 18 Deduction for dividends paid on certain preferred stock of public utilities . . . . 19 Total dividends. Add lines 1 through 17. Enter here and on page 1, line 4 . . . 20 Total special deductions. Add lines 9, 10, 11, 12, and 18. Enter here and on page 1, line 29b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000 . . . . . . 17,500 Form 1120 (2014) Page 3 Form 1120 (2014) Schedule J Tax Computation and Payment (see instructions) Part I-Tax Computation 1 2 3 Check if the corporation is a member of a controlled group (attach Schedule O (Form 1120)) . Income tax. Check if a qualified personal service corporation (see instructions) . . . . . Alternative minimum tax (attach Form 4626) . . . . . . . . . . . . . . . . . . . . . . . . . 4 5a b Add lines 2 and 3 . . . . . . . . Foreign tax credit (attach Form 1118) . . Credit from Form 8834 (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . General business credit (attach Form 3800) . . . Credit for prior year minimum tax (attach Form 8827) Bond credits from Form 8912 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 7 Total credits. Add lines 5a through 5e Subtract line 6 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . 8 9a Personal holding company tax (attach Schedule PH (Form 1120)) . Recapture of investment credit (attach Form 4255) . . . . . . . . . . . . . . . . b Recapture of low-income housing credit (attach Form 8611) . . . . . c c d e d e f 10 11 . . . . . . . . . . . . . . . . . 5a 5b 00 00 50,000 00 6 7 0 50,000 00 00 8 0 00 3 4 . 0 0 . . . . . . . . . . . 00 00 00 . . . . 9a 00 00 0 0 0 5c 5d 5e . . 50,000 0 2 . . . . . 0 00 9b 0 00 Interest due under the look-back methodcompleted long-term contracts (attach Form 8697) . . . . . . . . . . . . . . . . . . . . . . 9c 0 00 Interest due under the look-back methodincome forecast method 8866) . . . . . . . . . . . . . . . . . . . Alternative tax on qualifying shipping activities (attach Form 8902) . Other (see instructionsattach statement) . . . . . . . . 9d 9e 9f 0 0 0 00 00 00 . . Total. Add lines 9a through 9f . . . . . . . . . . . . Total tax. Add lines 7, 8, and 10. Enter here and on page 1, line 31 . (attach . . . . . . Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 11 0 50,000 00 00 00 00 Part II-Payments and Refundable Credits 12 13 2013 overpayment credited to 2014 2014 estimated tax payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 13 0 48,000 14 15 16 2014 refund applied for on Form 4466 . Combine lines 12, 13, and 14 . . . Tax deposited with Form 7004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 ( 15 16 0 00 ) 48,000 00 0 00 17 18 Withholding (see instructions) . . . . Total payments. Add lines 15, 16, and 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 18 0 48,000 00 00 19 Refundable credits from: Form 2439 . . . . . . . . . . . . . . . . . . 20 Form 4136 . . . . . . . . . . Form 8827, line 8c . . . . . . . Other (attach statementsee instructions). Total credits. Add lines 19a through 19d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19a 19b 19c 19d . . . 00 Total payments and credits. Add lines 18 and 20. Enter here and on page 1, line 32 . 20 21 0 21 48,000 00 a b c d Schedule K . . . . Other Information (see instructions) 1 Check accounting method: a 2 a b See the instructions and enter the: Business activity code no. Catering Food Services Business activity c Product or service Cash b Accrual c . . 0 00 0 0 0 00 00 00 . . . . . . . . . . Other (specify) Yes No 722300 Catering Services 3 Is the corporation a subsidiary in an affiliated group or a parent-subsidiary controlled group? If \"Yes,\" enter name and EIN of the parent corporation 4 At the end of the tax year: a b . . . . . . . . . . Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax-exempt organization own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of the corporation's stock entitled to vote? If "Yes," complete Part I of Schedule G (Form 1120) (attach Schedule G) . . . . . . Did any individual or estate own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of the corporation's stock entitled to vote? If "Yes," complete Part II of Schedule G (Form 1120) (attach Schedule G) . Form 1120 (2014) Page 4 Form 1120 (2014) Schedule K Other Information continued (see instructions) Yes 5 No At the end of the tax year, did the corporation: a Own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of stock entitled to vote of any foreign or domestic corporation not included on Form 851, Affiliations Schedule? For rules of constructive ownership, see instructions. If \"Yes,\" complete (i) through (iv) below. (i) Name of Corporation (ii) Employer Identification Number (if any) (iv) Percentage Owned in Voting Stock (iii) Country of Incorporation b Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions. If \"Yes,\" complete (i) through (iv) below. (i) Name of Entity 6 (ii) Employer Identification Number (if any) (iv) Maximum Percentage Owned in Profit, Loss, or Capital (iii) Country of Organization During this tax year, did the corporation pay dividends (other than stock dividends and distributions in exchange for stock) in excess of the corporation's current and accumulated earnings and profits? (See sections 301 and 316.) . . . . . . . If "Yes," file Form 5452, Corporate Report of Nondividend Distributions. If this is a consolidated return, answer here for the parent corporation and on Form 851 for each subsidiary. 7 At any time during the tax year, did one foreign person own, directly or indirectly, at least 25% of (a) the total voting power of all classes of the corporation's stock entitled to vote or (b) the total value of all classes of the corporation's stock? . . . . For rules of attribution, see section 318. If \"Yes,\" enter: (i) Percentage owned and (ii) Owner's country 8 (c) The corporation may have to file Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business. Enter the number of Forms 5472 attached Check this box if the corporation issued publicly offered debt instruments with original issue discount . . . . . . 9 10 If checked, the corporation may have to file Form 8281, Information Return for Publicly Offered Original Issue Discount Instruments. 5,600 Enter the amount of tax-exempt interest received or accrued during the tax year $ 3 Enter the number of shareholders at the end of the tax year (if 100 or fewer) 11 If the corporation has an NOL for the tax year and is electing to forego the carryback period, check here 12 If the corporation is filing a consolidated return, the statement required by Regulations section 1.1502-21(b)(3) must be attached or the election will not be valid. Enter the available NOL carryover from prior tax years (do not reduce it by any deduction on line 29a.) $ 13 . . . . . Are the corporation's total receipts (page 1, line 1a, plus lines 4 through 10) for the tax year and its total assets at the end of the tax year less than $250,000? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . If \"Yes,\" the corporation is not required to complete Schedules L, M-1, and M-2. Instead, enter the total amount of cash distributions $ and the book value of property distributions (other than cash) made during the tax year 14 15a b Is the corporation required to file Schedule UTP (Form 1120), Uncertain Tax Position Statement (see instructions)? If \"Yes,\" complete and attach Schedule UTP. Did the corporation make any payments in 2014 that would require it to file Form(s) 1099? . . . . . . . If \"Yes,\" did or will the corporation file required Forms 1099? . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 During this tax year, did the corporation have an 80% or more change in ownership, including a change due to redemption of its own stock? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 During or subsequent to this tax year, but before the filing of this return, did the corporation dispose of more than 65% (by value) of its assets in a taxable, non-taxable, or tax deferred transaction? . . . . . . . . . . . . . . . . . . 18 Did the corporation receive assets in a section 351 transfer in which any of the transferred assets had a fair market basis or fair market value of more than $1 million? . . . . . . . . . . . . . . . . . . . . . . . . . . . Form 1120 (2014) Page 5 Form 1120 (2014) Schedule L Balance Sheets per Books Beginning of tax year (a) Assets 1 Cash . . . . . . . . . . . Trade notes and accounts receivable . Less allowance for bad debts . . . Inventories . . . . . . . . . U.S. government obligations . . . Tax-exempt securities (see instructions) Other current assets (attach statement) Loans to shareholders . . . . . Mortgage and real estate loans . . . Other investments (attach statement) . Buildings and other depreciable assets Less accumulated depreciation . . . Depletable assets . . . . . . . Less accumulated depletion . . . . Land (net of any amortization) . . . Intangible assets (amortizable only) . Less accumulated amortization . . . Other assets (attach statement) . . . Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 17 18 19 20 21 22 Accounts payable . . . . . . . . . Mortgages, notes, bonds payable in less than 1 year Other current liabilities (attach statement) . . Loans from shareholders . . . . . . . Mortgages, notes, bonds payable in 1 year or more Other liabilities (attach statement) . . . . Capital stock: a Preferred stock . . . . b Common stock . . . . Additional paid-in capital . . . . . . . Retained earningsAppropriated (attach statement) Retained earningsUnappropriated . . . Adjustments to shareholders' equity (attach statement) Less cost of treasury stock . . . . . . Total liabilities and shareholders' equity . . (b) (c) (d) 180,000 . 2a b 3 4 5 6 7 8 9 10a b 11a b 12 13a b 14 15 End of tax year ( 560,000 60,000 ) ( ( 500,000 ( 140,000 20,000 120,000 0 0 0 400,000 140,000 50,000 ) 0 0) 0 0) ( 185,000 570,000 43,000 ) 527,000 150,000 20,000 120,000 10,107 0 0 353,000 160,000 60,000 ) 0 0) 90,000 ( 0 ( 0 100,000 0 0 0 0) 0 ( 20,000 1,470,000 0 45,893 1,511,000 Liabilities and Shareholders' Equity 23 24 25 26 27 28 Schedule M-1 280,000 0 20,000 0 0 40,000 0 400,000 240,000 0 21,000 0 0 23,000 0 400,000 400,000 0 0 730,000 0 0) 1,470,000 ( ( 400,000 0 0 827,000 0 0) 1,511,000 Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may be required to file Schedule M-3 (see instructions). 127,000 . . . . . 7 Income recorded on books this year 50,000 not included on this return (itemize): Federal income tax per books . . . . . 5,600 Excess of capital losses over capital gains . Tax-exempt interest $ 1 Net income (loss) per books . 2 3 Income subject to tax not recorded on books this year (itemize): 4 5,600 8 5 a b c 6 4 102,500 43,000 9 220,000 10 Add lines 7 and 8 . . . . . . Income (page 1, line 28)line 6 less line 9 108,100 111,900 Expenses recorded on books this year not deducted on this return (itemize): 10,000 Depreciation . . . . $ Charitable contributions . $ Travel and entertainment . $ Add lines 1 through 5 . Schedule M-2 1 2 3 Deductions on this return not charged against book income this year (itemize): 28,000 a Depreciation . . $ 25,000 b Charitable contributions $ Bad Debt $32,000 Dividend $17,500 . . 33,000 . . . . . Analysis of Unappropriated Retained Earnings per Books (Line 25, Schedule L) Balance at beginning of year Net income (loss) per books . Other increases (itemize): Add lines 1, 2, and 3 . . . . . . . . . . . . . . . . . 730,000 127,000 . 0 857,000 5 6 7 8 Distributions: a Cash . b Stock . c Property Other decreases (itemize): . . . . . . . . . Add lines 5 and 6 . . . . . . Balance at end of year (line 4 less line 7) 30,000 0 0 0 30,000 827,000 Form 1120 (2014) 1120 U.S. Corporation Income Tax Return Form Department of the Treasury Internal Revenue Service A Check if: 1a Consolidated return (attach Form 851) . b Lifeonlife consolidated return . . . 2 Personal holding co. (attach Sch. PH) . . OMB No. 1545-0123 , 2014, ending December 31 , 20 2014 14 Information about Form 1120 and its separate instructions is at www.irs.gov/form1120. B Employer identification number Name TYPE OR PRINT C Date incorporated Number, street, and room or suite no. If a P.O. box, see instructions. 540 Waverly Way February 2, 2009 D Total assets (see instructions) City or town, state, or province, country and ZIP or foreign postal code Burbank, CA 91501 . 4 Schedule M-3 attached 38-4743474 Celebrity Catering Services, Inc. 3 Personal service corp. (see instructions) . January 1 For calendar year 2014 or tax year beginning E Check if: (1) 1,511,000 $ (2) Initial return (3) Final return (4) Name change 00 Address change 00 . . . . . . . . . . . . 1a 1,800,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1b . . . . 5,000 2 3 4 Returns and allowances . . . . . Balance. Subtract line 1b from line 1a . Cost of goods sold (attach Form 1125-A) Gross profit. Subtract line 2 from line 1c Dividends (Schedule C, line 19) . . . . . . . . . . . . . . . . . . . . . . . . . . 1c 2 3 4 1,795,000 350,000 1,445,000 25,000 00 00 00 00 5 6 7 Interest . . Gross rents . Gross royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 6 7 6,400 0 0 00 00 00 8 9 10 Capital gain net income (attach Schedule D (Form 1120)) . . . . Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797) Other income (see instructionsattach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 9 10 (22,000) 0 0 00 00 00 11 12 13 Total income. Add lines 3 through 10 . . . . . . . . . Compensation of officers (see instructionsattach Form 1125-E) . . . . . . . . . . . . . . . . . . . . . . . . Salaries and wages (less employment credits) . . . . . . . . . . . . . . . . . . 11 12 13 1,454,400 470,000 525,000 00 00 00 14 15 16 Repairs and maintenance Bad debts . . . . . Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 15 16 6,000 32,000 20,000 00 00 00 17 18 19 Taxes and licenses . . Interest . . . . . Charitable contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 18 19 111,000 5,000 15,440 00 00 00 20 21 22 Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562) . Depletion . . . . . . . . . . . . . . . . . . . . . . . . . . . . Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 21 22 28,000 0 32,000 00 00 00 23 24 25 Pension, profit-sharing, etc., plans . . . . . . . . Employee benefit programs . . . . . . . . . . Domestic production activities deduction (attach Form 8903) . . . . 23 24 25 0 32,000 0 00 00 00 26 27 28 Other deductions (attach statement) . . . . . . . . . . . . . . . . . . . . . Total deductions. Add lines 12 through 26 . . . . . . . . . . . . . . . . . . . Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11. 0 00 Net operating loss deduction (see instructions) . . . . . . . . . . 29a 17,500 00 Special deductions (Schedule C, line 20) . . . . . . . . . . . . 29b 26 27 28 39,000 1,315,440 138,960 00 00 00 Add lines 29a and 29b . . . . . . . . . . . . . Taxable income. Subtract line 29c from line 28 (see instructions) 1a Tax, Refundable Credits, and Payments Deductions (See instructions for limitations on deductions.) Income b c 29a b c 30 31 32 33 34 35 36 Sign Here Gross receipts or sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00 . . . . . . . . . . . . 29c 30 17,500 121,460 00 00 Total tax (Schedule J, Part I, line 11) . . . . . . . . . . . . . . . . Total payments and refundable credits (Schedule J, Part II, line 21) . . . . . . . Estimated tax penalty (see instructions). Check if Form 2220 is attached . . . . . Amount owed. If line 32 is smaller than the total of lines 31 and 33, enter amount owed . . . . . . . . . . . . . . . . . . 31 32 33 34 50,000 48,000 0 2,000 00 00 00 00 Overpayment. If line 32 is larger than the total of lines 31 and 33, enter amount overpaid Enter amount from line 35 you want: Credited to 2015 estimated tax . . . . . Refunded 35 36 0 0 00 00 . . . . . . . . . . . . Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Signature of officer Paid Preparer Use Only Print/Type preparer's name Date Preparer's signature May the IRS discuss this return with the preparer shown below (see instructions)? Yes No Title Date Firm's name PTIN Firm's EIN Firm's address For Paperwork Reduction Act Notice, see separate instructions. Check if self-employed Phone no. Cat. No. 11450Q Form 1120 (2014) Page 2 Form 1120 (2014) Schedule C Dividends and Special Deductions (see instructions) (a) Dividends received 1 Dividends from less-than-20%-owned domestic corporations (other than debt-financed stock) . . . . . . . . . . . . . . . . . . . . . . . . 2 (b) % Dividends from 20%-or-more-owned domestic corporations (other than debt-financed stock) . . . . . . . . . . . . . . . . . . . . . . . . 25,000 70 (c) Special deductions (a) (b) 17,500 80 see instructions 3 Dividends on debt-financed stock of domestic and foreign corporations . . . . . 4 Dividends on certain preferred stock of less-than-20%-owned public utilities . . . 42 5 Dividends on certain preferred stock of 20%-or-more-owned public utilities . . . . 48 6 Dividends from less-than-20%-owned foreign corporations and certain FSCs . . . 70 7 Dividends from 20%-or-more-owned foreign corporations and certain FSCs . . . 80 8 Dividends from wholly owned foreign subsidiaries 100 9 Total. Add lines 1 through 8. See instructions for limitation 10 . . . . . . . . . . . . . . . . . . . Dividends from domestic corporations received by a small business investment company operating under the Small Business Investment Act of 1958 . . . . . 100 11 Dividends from affiliated group members . . . . . . . . . . . . . . 100 12 Dividends from certain FSCs . . . . . . . . . . . . . 100 13 Dividends from foreign corporations not included on lines 3, 6, 7, 8, 11, or 12 . . . 14 Income from controlled foreign corporations under subpart F (attach Form(s) 5471) 15 Foreign dividend gross-up . . . . . . . 16 IC-DISC and former DISC dividends not included on lines 1, 2, or 3 . . . . . . 17 Other dividends . . . . . . 18 Deduction for dividends paid on certain preferred stock of public utilities . . . . 19 Total dividends. Add lines 1 through 17. Enter here and on page 1, line 4 . . . 20 Total special deductions. Add lines 9, 10, 11, 12, and 18. Enter here and on page 1, line 29b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000 . . . . . . 17,500 Form 1120 (2014) Page 3 Form 1120 (2014) Schedule J Tax Computation and Payment (see instructions) Part I-Tax Computation 1 2 3 Check if the corporation is a member of a controlled group (attach Schedule O (Form 1120)) . Income tax. Check if a qualified personal service corporation (see instructions) . . . . . Alternative minimum tax (attach Form 4626) . . . . . . . . . . . . . . . . . . . . . . . . . 4 5a b Add lines 2 and 3 . . . . . . . . Foreign tax credit (attach Form 1118) . . Credit from Form 8834 (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . General business credit (attach Form 3800) . . . Credit for prior year minimum tax (attach Form 8827) Bond credits from Form 8912 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 7 Total credits. Add lines 5a through 5e Subtract line 6 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . 8 9a Personal holding company tax (attach Schedule PH (Form 1120)) . Recapture of investment credit (attach Form 4255) . . . . . . . . . . . . . . . . b Recapture of low-income housing credit (attach Form 8611) . . . . . c c d e d e f 10 11 . . . . . . . . . . . . . . . . . 5a 5b 00 00 50,000 00 6 7 0 50,000 00 00 8 0 00 3 4 . 0 0 . . . . . . . . . . . 00 00 00 . . . . 9a 00 00 0 0 0 5c 5d 5e . . 50,000 0 2 . . . . . 0 00 9b 0 00 Interest due under the look-back methodcompleted long-term contracts (attach Form 8697) . . . . . . . . . . . . . . . . . . . . . . 9c 0 00 Interest due under the look-back methodincome forecast method 8866) . . . . . . . . . . . . . . . . . . . Alternative tax on qualifying shipping activities (attach Form 8902) . Other (see instructionsattach statement) . . . . . . . . 9d 9e 9f 0 0 0 00 00 00 . . Total. Add lines 9a through 9f . . . . . . . . . . . . Total tax. Add lines 7, 8, and 10. Enter here and on page 1, line 31 . (attach . . . . . . Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 11 0 50,000 00 00 00 00 Part II-Payments and Refundable Credits 12 13 2013 overpayment credited to 2014 2014 estimated tax payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 13 0 48,000 14 15 16 2014 refund applied for on Form 4466 . Combine lines 12, 13, and 14 . . . Tax deposited with Form 7004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 ( 15 16 0 00 ) 48,000 00 0 00 17 18 Withholding (see instructions) . . . . Total payments. Add lines 15, 16, and 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 18 0 48,000 00 00 19 Refundable credits from: Form 2439 . . . . . . . . . . . . . . . . . . 20 Form 4136 . . . . . . . . . . Form 8827, line 8c . . . . . . . Other (attach statementsee instructions). Total credits. Add lines 19a through 19d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19a 19b 19c 19d . . . 00 Total payments and credits. Add lines 18 and 20. Enter here and on page 1, line 32 . 20 21 0 21 48,000 00 a b c d Schedule K . . . . Other Information (see instructions) 1 Check accounting method: a 2 a b See the instructions and enter the: Business activity code no. Catering Food Services Business activity c Product or service Cash b Accrual c . . 0 00 0 0 0 00 00 00 . . . . . . . . . . Other (specify) Yes No 722300 Catering Services 3 Is the corporation a subsidiary in an affiliated group or a parent-subsidiary controlled group? If \"Yes,\" enter name and EIN of the parent corporation 4 At the end of the tax year: a b . . . . . . . . . . Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax-exempt organization own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of the corporation's stock entitled to vote? If "Yes," complete Part I of Schedule G (Form 1120) (attach Schedule G) . . . . . . Did any individual or estate own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of the corporation's stock entitled to vote? If "Yes," complete Part II of Schedule G (Form 1120) (attach Schedule G) . Form 1120 (2014) Page 4 Form 1120 (2014) Schedule K Other Information continued (see instructions) Yes 5 No At the end of the tax year, did the corporation: a Own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of stock entitled to vote of any foreign or domestic corporation not included on Form 851, Affiliations Schedule? For rules of constructive ownership, see instructions. If \"Yes,\" complete (i) through (iv) below. (i) Name of Corporation (ii) Employer Identification Number (if any) (iv) Percentage Owned in Voting Stock (iii) Country of Incorporation b Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions. If \"Yes,\" complete (i) through (iv) below. (i) Name of Entity 6 (ii) Employer Identification Number (if any) (iv) Maximum Percentage Owned in Profit, Loss, or Capital (iii) Country of Organization During this tax year, did the corporation pay dividends (other than stock dividends and distributions in exchange for stock) in excess of the corporation's current and accumulated earnings and profits? (See sections 301 and 316.) . . . . . . . If "Yes," file Form 5452, Corporate Report of Nondividend Distributions. If this is a consolidated return, answer here for the parent corporation and on Form 851 for each subsidiary. 7 At any time during the tax year, did one foreign person own, directly or indirectly, at least 25% of (a) the total voting power of all classes of the corporation's stock entitled to vote or (b) the total value of all classes of the corporation's stock? . . . . For rules of attribution, see section 318. If \"Yes,\" enter: (i) Percentage owned and (ii) Owner's country 8 (c) The corporation may have to file Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business. Enter the number of Forms 5472 attached Check this box if the corporation issued publicly offered debt instruments with original issue discount . . . . . . 9 10 If checked, the corporation may have to file Form 8281, Information Return for Publicly Offered Original Issue Discount Instruments. 5,600 Enter the amount of tax-exempt interest received or accrued during the tax year $ 3 Enter the number of shareholders at the end of the tax year (if 100 or fewer) 11 If the corporation has an NOL for the tax year and is electing to forego the carryback period, check here 12 If the corporation is filing a consolidated return, the statement required by Regulations section 1.1502-21(b)(3) must be attached or the election will not be valid. Enter the available NOL carryover from prior tax years (do not reduce it by any deduction on line 29a.) $ 13 . . . . . Are the corporation's total receipts (page 1, line 1a, plus lines 4 through 10) for the tax year and its total assets at the end of the tax year less than $250,000? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . If \"Yes,\" the corporation is not required to complete Schedules L, M-1, and M-2. Instead, enter the total amount of cash distributions $ and the book value of property distributions (other than cash) made during the tax year 14 15a b Is the corporation required to file Schedule UTP (Form 1120), Uncertain Tax Position Statement (see instructions)? If \"Yes,\" complete and attach Schedule UTP. Did the corporation make any payments in 2014 that would require it to file Form(s) 1099? . . . . . . . If \"Yes,\" did or will the corporation file required Forms 1099? . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 During this tax year, did the corporation have an 80% or more change in ownership, including a change due to redemption of its own stock? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 During or subsequent to this tax year, but before the filing of this return, did the corporation dispose of more than 65% (by value) of its assets in a taxable, non-taxable, or tax deferred transaction? . . . . . . . . . . . . . . . . . . 18 Did the corporation receive assets in a section 351 transfer in which any of the transferred assets had a fair market basis or fair market value of more than $1 million? . . . . . . . . . . . . . . . . . . . . . . . . . . . Form 1120 (2014) Page 5 Form 1120 (2014) Schedule L Balance Sheets per Books Beginning of tax year (a) Assets 1 Cash . . . . . . . . . . . Trade notes and accounts receivable . Less allowance for bad debts . . . Inventories . . . . . . . . . U.S. government obligations . . . Tax-exempt securities (see instructions) Other current assets (attach statement) Loans to shareholders . . . . . Mortgage and real estate loans . . . Other investments (attach statement) . Buildings and other depreciable assets Less accumulated depreciation . . . Depletable assets . . . . . . . Less accumulated depletion . . . . Land (net of any amortization) . . . Intangible assets (amortizable only) . Less accumulated amortization . . . Other assets (attach statement) . . . Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 17 18 19 20 21 22 Accounts payable . . . . . . . . . Mortgages, notes, bonds payable in less than 1 year Other current liabilities (attach statement) . . Loans from shareholders . . . . . . . Mortgages, notes, bonds payable in 1 year or more Other liabilities (attach statement) . . . . Capital stock: a Preferred stock . . . . b Common stock . . . . Additional paid-in capital . . . . . . . Retained earningsAppropriated (attach statement) Retained earningsUnappropriated . . . Adjustments to shareholders' equity (attach statement) Less cost of treasury stock . . . . . . Total liabilities and shareholders' equity . . (b) (c) (d) 180,000 . 2a b 3 4 5 6 7 8 9 10a b 11a b 12 13a b 14 15 End of tax year ( 560,000 60,000 ) ( ( 500,000 ( 140,000 20,000 120,000 0 0 0 400,000 140,000 50,000 ) 0 0) 0 0) ( 185,000 570,000 43,000 ) 527,000 150,000 20,000 120,000 10,107 0 0 353,000 160,000 60,000 ) 0 0) 90,000 ( 0 ( 0 100,000 0 0 0 0) 0 ( 20,000 1,470,000 0 45,893 1,511,000 Liabilities and Shareholders' Equity 23 24 25 26 27 28 Schedule M-1 280,000 0 20,000 0 0 40,000 0 400,000 240,000 0 21,000 0 0 23,000 0 400,000 400,000 0 0 730,000 0 0) 1,470,000 ( ( 400,000 0 0 827,000 0 0) 1,511,000 Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may be required to file Schedule M-3 (see instructions). 127,000 . . . . . 7 Income recorded on books this year 50,000 not included on this return (itemize): Federal income tax per books . . . . . 5,600 Excess of capital losses over capital gains . Tax-exempt interest $ 1 Net income (loss) per books . 2 3 Income subject to tax not recorded on books this year (itemize): 4 5,600 8 5 a b c 6 4 43,000 9 220,000 10 Add lines 7 and 8 . . . . . . Income (page 1, line 28)line 6 less line 9 Expenses recorded on books this year not deducted on this return (itemize): 10,000 Depreciation . . . . $ Charitable contributions . $ 12,000 Travel and entertainment . $ Bad Debt 15,000; Premium 6,000 Add lines 1 through 5 . Schedule M-2 1 2 3 Deductions on this return not charged against book income this year (itemize): 28,000 a Depreciation . . $ 15,440 b Charitable contributions $ Bad Debt $32,000 . . . . . . . 75,440 81,040 138,960 Analysis of Unappropriated Retained Earnings per Books (Line 25, Schedule L) Balance at beginning of year Net income (loss) per books . Other increases (itemize): Add lines 1, 2, and 3 . . . . . . . . . . . . . . . . . 730,000 127,000 . 0 857,000 5 6 7 8 Distributions: a Cash . b Stock . c Property Other decreases (itemize): . . . . . . . . . Add lines 5 and 6 . . . . . . Balance at end of year (line 4 less line 7) 30,000 0 0 0 30,000 827,000 Form 1120 (2014) 1120 U.S. Corporation Income Tax Return Form Department of the Treasury Internal Revenue Service A Check if: 1a Consolidated return (attach Form 851) . b Lifeonlife consolidated return . . . 2 Personal holding co. (attach Sch. PH) . . 38-4743474 Celebrity Catering Services, Inc. TYPE OR PRINT C Date incorporated Number, street, and room or suite no. If a P.O. box, see instructions. 540 Waverly Way February 2, 2009 D Total assets (see instructions) City or town, state, or province, country and ZIP or foreign postal code Burbank, CA 91501 . E Check if: (1) Gross receipts or sales . . . . . . 1,511,000 $ (2) Initial return . . . (3) Final return . . . . . . . (4) Name change 00 Address change 1a . 1,800,000 00 5,000 00 . . . . . . . . . . . . . . . . . . . . . . . . 1c 2 3 4 1,795,000 350,000 1,445,000 25,000 00 00 00 00 Deductions (See instructions for limitations on deductions.) Tax, Refundable Credits, and Payments 2 3 4 Returns and allowances . . . . . Balance. Subtract line 1b from line 1a . Cost of goods sold (attach Form 1125-A) Gross profit. Subtract line 2 from line 1c Dividends (Schedule C, line 19) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1b . . . . 5 6 7 Interest . . Gross rents . Gross royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 6 7 7,900 0 0 00 00 00 8 9 10 Income b c 2014 14 B Employer identification number Name 4 Schedule M-3 attached 1a OMB No. 1545-0123 , 2014, ending December 31 , 20 Information about Form 1120 and its separate instructions is at www.irs.gov/form1120. 3 Personal service corp. (see instructions) . January 1 For calendar year 2014 or tax year beginning Capital gain net income (attach Schedule D (Form 1120)) . . . . Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797) Other income (see instructionsattach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 9 10 0 0 0 00 00 00 11 12 13 Total income. Add lines 3 through 10 . . . . . . . . . Compensation of officers (see instructionsattach Form 1125-E) . . . . . . . . . . . . . . . . . . . . . . . . Salaries and wages (less employment credits) . . . . . . . . . . . . . . . . . . 11 12 13 1,477,900 470,000 525,000 00 00 00 14 15 16 Repairs and maintenance Bad debts . . . . . Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 15 16 6,000 32,000 20,000 00 00 00 17 18 19 Taxes and licenses . . Interest . . . . . Charitable contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 18 19 111,000 5,000 17,790 00 00 00 20 21 22 Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562) . Depletion . . . . . . . . . . . . . . . . . . . . . . . . . . . . Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 21 22 28,000 0 32,000 00 00 00 23 24 25 Pension, profit-sharing, etc., plans . . . . . . . . Employee benefit programs . . . . . . . . . . Domestic production activities deduction (attach Form 8903) . . . . 23 24 25 0 32,000 0 00 00 00 26 27 28 Other deductions (attach statement) . . . . . . . . . . . . . . . . . . . . . Total deductions. Add lines 12 through 26 . . . . . . . . . . . . . . . . . . . Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11. 0 00 Net operating loss deduction (see instructions) . . . . . . . . . . 29a 20,000 00 Special deductions (Schedule C, line 20) . . . . . . . . . . . . 29b 26 27 28 39,000 1,317,790 160,110 00 00 00 Add lines 29a and 29b . . . . . . . . . . . . . Taxable income. Subtract line 29c from line 28 (see instructions) 29a b c 30 31 32 33 34 35 36 Sign Here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29c 30 20,000 140,110 00 00 Total tax (Schedule J, Part I, line 11) . . . . . . . . . . . . . . . . Total payments and refundable credits (Schedule J, Part II, line 21) . . . . . . . Estimated tax penalty (see instructions). Check if Form 2220 is attached . . . . . Amount owed. If line 32 is smaller than the total of lines 31 and 33, enter amount owed . . . . . . . . . . . . . . . . . . 31 32 33 34 50,000 48,000 0 2,000 00 00 00 00 Overpayment. If line 32 is larger than the total of lines 31 and 33, enter amount overpaid Enter amount from line 35 you want: Credited to 2015 estimated tax . . . . . Refunded 35 36 0 0 00 00 . . . . . . . . . . . . Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Signature of officer Paid Preparer Use Only Print/Type preparer's name Date Preparer's signature May the IRS discuss this return with the preparer shown below (see instructions)? Yes No Title Date Firm's name PTIN Firm's EIN Firm's address For Paperwork Reduction Act Notice, see separate instructions. Check if self-employed Phone no. Cat. No. 11450Q Form 1120 (2014) Page 2 Form 1120 (2014) Schedule C Dividends and Special Deductions (see instructions) (a) Dividends received 1 Dividends from less-than-20%-owned domestic corporations (other than debt-financed stock) . . . . . . . . . . . . . . . . . . . . . . . . 2 Dividends from 20%-or-more-owned domestic corporations (other than debt-financed stock) . . . . . . . . . . . . . . . . . . . . . . . . (b) % (c) Special deductions (a) (b) 3 Dividends on debt-financed stock of domestic and foreign corporations . . . . Dividends on certain preferred stock of less-than-20%-owned public utilities . . . 5 Dividends on certain preferred stock of 20%-or-more-owned public utilities . . . . 6 Dividends from less-than-20%-owned foreign corporations and certain FSCs . . . 7 Dividends from 20%-or-more-owned foreign corporations and certain FSCs . . . 8 Dividends from wholly owned foreign subsidiaries 9 Total. Add lines 1 through 8. See instructions for limitation 20,000 . 4 25,000 . . . . . . . . . . . . . . . . . . . 10 Dividends from domestic corporations received by a small business investment company operating under the Small Business Investment Act of 1958 . . . . . 11 Dividends from affiliated group members . . . . . . . . . . . . . . 12 Dividends from certain FSCs . . . . . . . . . . . . . 13 Dividends from foreign corporations not included on lines 3, 6, 7, 8, 11, or 12 . . . 14 Income from controlled foreign corporations under subpart F (attach Form(s) 5471) 15 Foreign dividend gross-up . . . . . . . 16 IC-DISC and former DISC dividends not included on lines 1, 2, or 3 . . . . . . 17 Other dividends . . . . . . 18 Deduction for dividends paid on certain preferred stock of public utilities . . . . 19 Total dividends. Add lines 1 through 17. Enter here and on page 1, line 4 . . . 20 Total special deductions. Add lines 9, 10, 11, 12, and 18. Enter here and on page 1, line 29b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000 . . . . . . 20,000 Form 1120 (2014) Page 3 Form 1120 (2014) Schedule J Tax Computation and Payment (see instructions) Part I-Tax Computation 1 2 3 Check if the corporation is a member of a controlled group (attach Schedule O (Form 1120)) . Income tax. Check if a qualified personal service corporation (see instructions) . . . . . Alternative minimum tax (attach Form 4626) . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5a b Add lines 2 and 3 . . . . . . . . Foreign tax credit (attach Form 1118) . . Credit from Form 8834 (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . General business credit (attach Form 3800) . . . Credit for prior year minimum tax (attach Form 8827) Bond credits from Form 8912 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 7 Total credits. Add lines 5a through 5e Subtract line 6 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . 8 9a Personal holding company tax (attach Schedule PH (Form 1120)) . Recapture of investment credit (attach Form 4255) . . . . . . . . . . . . . . . . b Recapture of low-income housing credit (attach Form 8611) . . . . . c c d e d e f 10 11 . . . . . . . . . . . . . . . . . 5a 5b 00 00 50,000 00 6 7 0 50,000 00 00 8 0 00 3 4 0 0 . . . . . . . . . . . 00 00 00 . . . . 9a 00 00 0 0 0 5c 5d 5e . . 50,000 0 2 . . . . 0 00 9b 0 00 Interest due under the look-back methodcompleted long-term contracts (attach Form 8697) . . . . . . . . . . . . . . . . . . . . . . 9c 0 00 Interest due under the look-back methodincome forecast method 8866) . . . . . . . . . . . . . . . . . . . Alternative tax on qualifying shipping activities (attach Form 8902) . Other (see instructionsattach statement) . . . . . . . . 9d 9e 9f 0 0 0 00 00 00 . . Total. Add lines 9a through 9f . . . . . . . . . . . . Total tax. Add lines 7, 8, and 10. Enter here and on page 1, line 31 . (attach . . . . . . Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 11 0 50,000 00 00 00 00 Part II-Payments and Refundable Credits 12 13 2013 overpayment credited to 2014 2014 estimated tax payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 13 0 48,000 14 15 16 2014 refund applied for on Form 4466 . Combine lines 12, 13, and 14 . . . Tax deposited with Form 7004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 ( 15 16 0 00 ) 48,000 00 0 00 17 18 Withholding (see instructions) . . . . Total payments. Add lines 15, 16, and 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 18 0 48,000 00 00 19 Refundable credits from: Form 2439 . . . . . . . . . . . . . . . . . . 20 Form 4136 . . . . . . . . . . Form 8827, line 8c . . . . . . . Other (attach statementsee instructions). Total credits. Add lines 19a through 19d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19a 19b 19c 19d . . . 00 Total payments and credits. Add lines 18 and 20. Enter here and on page 1, line 32 . 20 21 0 21 48,000 00 a b c d Schedule K . . . . Other Information (see instructions) 1 Check accounting method: a 2 a b See the instructions and enter the: Business activity code no. Catering Food Services Business activity c Product or service Cash b Accrual c . . 0 00 0 0 0 00 00 00 . . . . . . . . . . Other (specify) Yes No 722300 Catering Services 3 Is the corporation a subsidiary in an affiliated group or a parent-subsidiary controlled group? If \"Yes,\" enter name and EIN of the parent corporation 4 At the end of the tax year: a b . . . . . . . . . . Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax-exempt organization own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of the corporation's stock entitled to vote? If "Yes," complete Part I of Schedule G (Form 1120) (attach Schedule G) . . . . . . Did any individual or estate own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of the corporation's stock entitled to vote? If "Yes," complete Part II of Schedule G (Form 1120) (attach Schedule G) . Form 1120 (2014) Page 4 Form 1120 (2014) Schedule K Other Information continued (see instructions) Yes 5 No At the end of the tax year, did the corporation: a Own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of stock entitled to vote of any foreign or domestic corporation not included on Form 851, Affiliations Schedule? For rules of constructive ownership, see instructions. If \"Yes,\" complete (i) through (iv) below. (i) Name of Corporation (ii) Employer Identification Number (if any) (iv) Percentage Owned in Voting Stock (iii) Country of Incorporation b Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions. If \"Yes,\" complete (i) through (iv) below. (i) Name of Entity 6 (ii) Employer Identification Number (if any) (iv) Maximum Percentage Owned in Profit, Loss, or Capital (iii) Country of Organization During this tax year, did the corporation pay dividends (other than stock dividends and distributions in exchange for stock) in excess of the corporation's current and accumulated earnings and profits? (See sections 301 and 316.) . . . . . . . If "Yes," file Form 5452, Corporate Report of Nondividend Distributions. If this is a consolidated return, answer here for the parent corporation and on Form 851 for each subsidiary. 7 At any time during the tax year, did one foreign person own, directly or indirectly, at least 25% of (a) the total voting power of all classes of the corporation's stock entitled to vote or (b) the total value of all classes of the corporation's stock? . . . . For rules of attribution, see section 318. If \"Yes,\" enter: (i) Percentage owned and (ii) Owner's country 8 (c) The corporation may have to file Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business. Enter the number of Forms 5472 attached Check this box if the corporation issued publicly offered debt instruments with original issue discount . . . . . . 9 10 If checked, the corporation may have to file Form 8281, Information Return for Publicly Offered Original Issue Discount Instruments. 4,100 Enter the amount of tax-exempt interest received or accrued during the tax year $ 3 Enter the number of shareholders at the end of the tax year (if 100 or fewer) 11 If the corporation has an NOL for the tax year and is electing to forego the carryback period, check here 12 If the corporation is filing a consolidated return, the statement required by Regulations section 1.1502-21(b)(3) must be attached or the election will not be valid. Enter the available NOL carryover from prior tax years (do not reduce it by any deduction on line 29a.) $ 13 . . . . . Are the corporation's total receipts (page 1, line 1a, plus lines 4 through 10) for the tax year and its total assets at the end of the tax year less than $250,000? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . If \"Yes,\" the corporation is not required to complete Schedules L, M-1, and M-2. Instead, enter the total amount of cash distributions $ and the book value of property distributions (other than cash) made during the tax year 14 15a b Is the corporation required to file Schedule UTP (Form 1120), Uncertain Tax Position Statement (see instructions)? If \"Yes,\" complete and attach Schedule UTP. Did the corporation make any payments in 2014 that would require it to file Form(s) 1099? . . . . . . . If \"Yes,\" did or will the corporation file required Forms 1099? . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 During this tax year, did the corporation have an 80% or more change in ownership, including a change due to redemption of its own stock? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 During or subsequent to this tax year, but before the filing of this return, did the corporation dispose of more than 65% (by value) of its assets in a taxable, non-taxable, or tax deferred transaction? . . . . . . . . . . . . . . . . . . 18 Did the corporation receive assets in a section 351 transfer in which any of the transferred assets had a fair market basis or fair market value of more than $1 million? . . . . . . . . . . . . . . . . . . . . . . . . . . . Form 1120 (2014) Page 5 Form 1120 (2014) Schedule L Balance Sheets per Books Beginning of tax year (a) Assets 1 Cash . . . . . . . . . . . Trade notes and accounts receivable . Less allowance for bad debts . . . Inventories . . . . . . . . . U.S. government obligations . . . Tax-exempt securities (see instructions) Other current assets (attach statement) Loans to shareholders . . . . . Mortgage and real estate loans . . . Other investments (attach statement) . Buildings and other depreciable assets Less accumulated depreciation . . . Depletable assets . . . . . . . Less accumulated depletion . . . . Land (net of any amortization) . . . Intangible assets (amortizable only) . Less accumulated amortization . . . Other assets (attach statement) . . . Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 17 18 19 20 21 22 Accounts payable . . . . . . . . . Mortgages, notes, bonds payable in less than 1 year Other current liabilities (attach statement) . . Loans from shareholders . . . . . . . Mortgages, notes, bonds payable in 1 year or more Other liabilities (attach statement) . . . . Capital stock: a Preferred stock . . . . b Common stock . . . . Additional paid-in capital . . . . . . . Retained earningsAppropriated (attach statement) Retained earningsUnappropriated . . . Adjustments to shareholders' equity (attach statement) Less cost of treasury stock . . . . . . Total liabilities and shareholders' equity . . (b) (c) (d) 180,000 . 2a b 3 4 5 6 7 8 9 10a b 11a b 12 13a b 14 15 End of tax year ( 560,000 60,000 ) ( ( 500,000 ( 140,000 20,000 120,000 0 0 0 400,000 140,000 50,000 ) 0 0) 0 0) ( 185,000 570,000 43,000 ) 527,000 150,000 20,000 120,000 10,107 0 0 353,000 160,000 60,000 ) 0 0) 90,000 ( 0 ( 0 100,000 0 0 0 0) 0 ( 20,000 1,470,000 0 45,893 1,511,000 Liabilities and Shareholders' Equity 23 24 25 26 27 28 Schedule M-1 280,000 0 20,000 0 0 40,000 0 400,000 240,000 0 21,000 0 0 23,000 0 400,000 400,000 0 0 730,000 0 0) 1,470,000 ( ( 400,000 0 0 827,000 0 0) 1,511,000 Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may be required to file Schedule M-3 (see instructions). 127,000 . . . . . 7 Income recorded on books this year 50,000 not included on this return (itemize): Federal income tax per books . . . . . 4,100 Excess of capital losses over capital gains . Tax-exempt interest $ 1 Net income (loss) per books . 2 3 Income subject to tax not recorded on books this year (itemize): 4 4,100 8 5 a b c 6 Charitable contributions . $ 12,000 Travel and entertainment . $ Bad Debt 15,000; Premium 6,000; CLos 22,000 Add lines 1 through 5 . Schedule M-2 1 2 3 4 Deductions on this return not charged against book income this year (itemize): 28,000 a Depreciation . . $ 17,790 b Charitable contributions $ Bad Debt $32,000 65,000 9 242,000 10 Add lines 7 and 8 . . . . . . Income (page 1, line 28)line 6 less line 9 Expenses recorded on books this year not deducted on this return (itemize): 10,000 Depreciation . . . . $ . . . . . . . 77,790 81,890 160,110 Analysis of Unappropriated Retained Earnings per Books (Line 25, Schedule L) Balance at beginning of year Net income (loss) per books . Other increases (itemize): Add lines 1, 2, and 3 . . . . . . . . . . . . . . . . . 730,000 127,000 . 0 857,000 5 6 7 8 Distributions: a Cash . b Stock . c Property Other decreases (itemize): . . . . . . . . . Add lines 5 and 6 . . . . . . Balance at end of year (line 4 less line 7) 30,000 0 0 0 30,000 827,000 Form 1120 (2014)