Please complete Express Catering, Inc.'s 2023 Form 1120, Schedule C, Schedule J, Schedule K, Schedule L, Schedule M-1 and M-2, Schedule D, Form 4562, and Form 1125-E U.S. Corporation Income Tax Return, based upon the information provided below. If required information is missing, use reasonable assumptions to fill in the gaps.

Facts:

Express Catering, Inc. (EC) is organized in the state of New York as a corporation and is taxed as a "C" corporation with a calendar year-end. EC operates a delicatessen/bakery in New York City, NY that specializes in mobile food catering for events and gatherings within the tri-state area. EC's address (unchanged since inception), employer identification number (EIN), and date of incorporation are as follows:

Express Catering, Inc.

257 West 55^th Avenue

New York City, NY 10027

EIN: 13-9823459

Date of Incorporation: March 17, 2015

EC's address has not changed since its inception.

EC has been rapidly expanding its catering business. This expansion has required a significant amount of new equipment purchases. EC sold some of its liquid investments in order to avoid having to take on debt to fund these purchases. Further, EC invested heavily in its catering business by significantly increasing its advertising budget. EC and its officers expect that revenue increases from these expenditures will begin next year.

EC is owned by four related shareholders from the same family for the entire year: Raphael Giordano (father) and his three children Silvia, Andrea, and Marco. None of EC's shareholders are non-U.S. persons. There are currently 10,000 shares of EC common stock issued and outstanding (EC has never issued preferred stock).

The shareholders are also employees of EC and its only corporate officers. The relevant shareholder and officer information for the current year is provided below. Officer compensation is included in Employee Salaries on the income statement. Their personal information is provided below:

Raphael Giordano

160 West 57^th Avenue

New York City, NY 10027

SSN: 356-87-4322

Shares owned 5,500

100% of time devoted to the business, compensation of $150,000

Silvia Giordano Costa

250 South Main

Hoboken, New Jersey 07030

SSN: 284-58-4583

Shares owned 1,500

100% of time devoted to the business, compensation of $130,000

Andrea Giordano

65 East 55^th Avenue

New York City, NY 10027

SSN: 423-84-2343

Shares owned 1,500

100% of time devoted to the business, compensation of $130,000

Marco Giordano

160 West 57^th Avenue

New York City, NY 10027

SSN-487-27-4797

Shares owned 1,500

100% of time devoted to the business, compensation of $120,000

EC follows the accrual method of accounting (GAAP) and is not a member of any consolidated or affiliated group of entities. EC is not audited by a CPA firm and has never had to restate its financial statement information.

Supplementary Details:

• The dividends received by EC during the year were paid by Apple, Inc. (EC owns less than 20% of Apple, Inc.'s stock).
• EC had its sole municipal bond (New York City) redeemed (bought back) in the current year. EC originally purchased the New York City bonds on February 1, 2017 for $100,000 (no premium or discount paid). The bond was redeemed by New York City on February 1, 2023 for $100,000. Both tax basis and proceeds received on this transaction were reported to EC on a Form 1099-B.
• EC purchased 200 shares of Apple, Inc. on October 10, 2017 for $100,000 (including commission). On July 10, of the current year, EC sold the 200 shares of Apple, Inc. for $350 a share (including commission). Both tax basis and proceeds received on this transaction were reported to EC on a form 1099-B.
• During the year, EC contributed $8,000 to the American Lung Association.
• On December 10, EC paid Madison Advertising $27,500 to design a new catering advertisement campaign for next year. This money represented half of the total $55,000 contract price. EC expects that the services will be provided and delivered to EC on about June 30, 2023.
• EC prepaid an insurance premium of $21,000 in September. The new policy is effective October 1, 2023 through September 30, 2024.
• EC's regular tax depreciation for the year is correctly calculated as $350,000 before considering the current year fixed asset additions of $840,000 (see table below). EC wants to claim the fastest recovery method(s) possible on these asset additions without electing any 179 expensing.
• EC acquired the following new fixed assets from unrelated parties in 2023:

Description	Date Purchased	Amount
5-year MACRS Property	October 2, 2023	$480,000
7-year MACRS Property	September 10, 2023	$320,000
Delivery Truck (over 6,000 lbs): 5-year MACRS Property	October 12, 2023	$40,000

Supplementary Details (continued):

• Meal expenses were incurred for clients and EC staff at important meetings where business was conducted. EC did not incur any entertainment-related expenses in 2023.
• EC values its inventory at cost and has always used the specific identification method for reporting purposes. The company has never written down any inventory for any reason and the rules of Section 263A (UNICAP) do not apply to EC.

• EC made the following estimated Federal income tax payments:
  • April 15^th, 2023: $2,000
  • September 15^th, 2023: $2,000
  • June 15^th, 2023: $2,000
  • December 15^th, 2023: $1,000
• If applicable, EC wants any overpayment refunded.

Miscellaneous Information:

• EC did not make any dividend distributions or distributions in excess of current and accumulated earnings and profits during the current year.
• EC does not have any net operating loss carryforward amounts available for the current year.
• EC has never issued publicly offered debt instruments.
• EC is not required to file a Schedule UTP, Uncertain Tax Position Statement.
• EC made several payments during the current year that were required to be reported on Forms 1099-NEC; all required Forms 1099 were filed timely by EC.
• EC has never disposed of more than 65% (by value) of its assets in a taxable, non-taxable, or tax-deferred transaction.
• EC did not receive any assets in Section 351 transfers during the year.
• EC's average annual gross receipts have never exceeded $26 million annually.

Express Catering, Inc.

Financial Statements (kept on a GAAP basis):

Balance Sheet

Assets: 12/31/2022 12/31/2023

Cash $ 62,500 $ 1,037,000

Accounts Receivable 145,000 177,000

Less: Allowance for Bad Debts (32,000) (41,000)

Inventory 59,000 96,000

Publicly traded securities 100,000 0

Tax-exempt bond 100,000 0

U.S. Treasury Bonds 125,000 125,000

Fixed Assets 2,115,000 2,955,000

Less: Acc. Depreciation (436,500) (715,000)

Prepaid Insurance 0 15,750

Prepaid Rent 38,500 39,500

Prepaid Advertising 0 27,500

Total Assets: $2,276,500 $3,716,750

Liabilities and Shareholders' Equity:

Accounts Payable 102,000 131,000

Accrued Bonuses 45,000 0

Accrued Vacation 62,500 73,000

Accrued Wages 44,500 51,500

Event Deposits 0 100,000

Income Tax Payable 0 $46,820 Deferred Tax Liability 45,910 14,000

Note Payable-First Bank of NY (Credit Line) 424,000 657,000

Note Payable-EG Capital Equipment Leasing 1,243,000 1,415,000

Capital Stock 1,000 1,000

Additional paid-in Capital 99,000 99,000

Retained Earnings-Unappropriated 209,590 1,128,430

Total Liabilities and Shareholders' Equity: $2,276,500 $3,716,750

Income Statement for the period ending December 31, 2023

Item Amount

Income:

Gross Sales $ 3,925,000

Less: Returns (8,500)

Net Sales 3,916,500

Cost of Goods Sold (1,129,850)

Gross Profit 2,786,650

Dividend Income 2,800

Interest Income-Bank 150

Interest Income-U.S. Treasury 3,000

Municipal Bond Interest Income 1,400

Capital Loss-Shares of Apple, Inc. (30,000)

Total Income: 2,764,000

Expenses:

Employee Salaries 743,500

Repairs and Maintenance 19,000

Bad Debts 44,000

Rent 230,000

Payroll Taxes 60,000

Licensing Fees 4,500

Property Taxes 12,500

Interest Expense 140,000

Depreciation 278,500

Office Supplies 5,400

Employee Training 3,600

Employee Benefits 24,000

Charitable Contribution 9,700

Advertising 70,000

Meals 3,400

Travel 600

Insurance 19,750

Utilities 142,000

Telephone 14,500

Federal income tax expense/(benefit) 21,910

Total Expenses: 1,845,160

Net Income (Loss): $917,140