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or s Shares owned 1,500 Tiger uses the accrual method of accounting and folows GAAP. EC Is not a subsidiary not effilated group with is it in an amy other entity. Tiger is not audited by a CPA firm and has never had a Tiger reported the following information for the year Tiger did not pay dividends in excess of its current and accumulated earnings and profits None of the stock of Tiger is owned by non-U.S. persons e Tiger has never issued publicly offered debt instruments . Tiger is not required to file a Form UTP . Tiger made several payments in the current year that required the filing of federal Formms 1099 These Forms 1099 were filed timely by Tiger During the year, none of the shareholders of Tiger changed Tiger has never disposed of more than 65% (by value) of its assets in a taxable. non-tiable,or tax-deferred transaction. . . . Tiger did not receive any assets in Section 351 transfers during the year . All of the questions on Schedule B, Form 1120 should be checked "no" for the year. Additional information: Tiger has been rapidly expanding its catering business. This expansion has required a significant amount of new equipment purchases. Tiger sold some of its liquid investments in order to avoid having to take on debt to fund these purchases. Further, Tiger invested heavily in its catering business by significantly increasing its advertising budget. Tiger and its officers expect that revenue increases from these expenditures will begin next year Despite being profitable the past few years, Tiger does not want to carryback net operating loss if amy) generated in the current year. Tiger believes the next few years will be far more profitable and the losses will be of a greater tax benefit in the future. The dividends received by EC during the year were paid by Apple, Inc. Tiger 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, 2014 for $100,000 (no premium or discount paid). The bond was redeemed by New York City on February 1,2017 for $100,000. Both tax basis and proceeds received on this transaction were reported to EC on a form 1099-8 Tiger purchased 200 shares of Apple, Inc. on October 10, 2014 for $1.0.000 (ncluding commisson). 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. Ouring the year, Tiger contributed $8,000 to the American Lung Association. On December 10, Tiger paid Madison Advertising $27,500 to design a new catering campaign for next year. This money represented hailf of the total $55,000 contract price. Tiger expects services will be provided and delivered to EC on about June 30, 2018. Tiger prepaid an insurance premium of $21,000 in September. The new policy is effective October 1, 2018 through September 30, 2019. Tiger's regular tax depreciation for the year i method's) possible on these asset additions without electing any $179 expensing is correctly calculated as $350,000 before considering the wants EC wants to claim the fastest recovery ef 5840.000 (see table belewl Social Security Percent of time Percent of stock devoted to Amount of compensation Name owned number 55% 15% 15% 1 5% 150,000 130,000 130,000 120,000 Raphael Giordano356-87-4322 284-58-4583 100% 100% 100% Sivia Costa Andrea Giordano 487-27-4797 As reported on the balance sheet (see below), on December 31, 2017 the accrued wages were $44,500 and the accrued bonuses were S45,000. The wages and bonuses were payable to Raphael, Silvia Andrea, and Marco. These accrued wages and bonuses were paid on January 20, of 2017. Also, as reported on the balance sheet, on December 31, 2017, the accrued wages were $51,500. The wages were owed to Raphael, Silvia, Andrea, and Marco. The accrued wages were paid on January 22, 2018. All the other employees' wages and bonuses were paid on December 31, 2018. As of December 31, 2016 and December 31, 2017, respectively, Tiger had accrued vacation payable on its books of $62,500 and $73,000. All the 2016 vacation accrual was paid during the period from April 1 through November 30, 2018. As of March 15, 2018 EC had paid none of its 2018 accrual. All of the vacation accrual amounts for both years were owed to employees other than Raphael, Silvia, Andrea, On November 1, a large insurance company paid Tiger a $100,000 deposit to reserve catering event services on March 18, 2018 at the insurance company's annual meeting in New York City. The money is ully refundable until January 15, 2019. Thereafter, half of the deposit becomes non-refundable. changed its has never for its inventory sudmormal goods The rules of Section 26SA (UNICAP) do not apply to Tieer Tieer made no estimated tax payments during the current year tatements (hept on a GAAP basis: Tiger Catering, Inc $ 44,000 177,000 (41,000) s 62,500 145,000 (32,000) 59,000 Less: Allowance for Bad Debts ax-exempt bond 100,000 125,000 2,115,000 (436,500) 125,000 2,955,000 (715,000) 15,750 U.S Treasury Bonds Fixed Assets Less: Acc. Depreciation Prepaid Insurance Prepaid Rent Total Assets: 52,276,500 $2,723,750 Liabilities and Shareholders' Equity Accounts Payable Accrued Bonuses 102,000 131,000 45,000 44,500 45,910 Accrued Vacation 73,000 51,500 100,000 14,000 657,000 1,415,000 Accrued Wages Event Deposits Deferred Tax Liability Note Payable-First Bank of TX (Credit Line) 424,000 Note Payable-EG Capital Equipment Leasing 1,243,000 Capital Stock Additional paid-in Capital Retained Earnings-Unappropriated 1,000 99,000 99,000 Total Liabilities and Shareholders' Equity $2,723,750 $2,276,500 or s Shares owned 1,500 Tiger uses the accrual method of accounting and folows GAAP. EC Is not a subsidiary not effilated group with is it in an amy other entity. Tiger is not audited by a CPA firm and has never had a Tiger reported the following information for the year Tiger did not pay dividends in excess of its current and accumulated earnings and profits None of the stock of Tiger is owned by non-U.S. persons e Tiger has never issued publicly offered debt instruments . Tiger is not required to file a Form UTP . Tiger made several payments in the current year that required the filing of federal Formms 1099 These Forms 1099 were filed timely by Tiger During the year, none of the shareholders of Tiger changed Tiger has never disposed of more than 65% (by value) of its assets in a taxable. non-tiable,or tax-deferred transaction. . . . Tiger did not receive any assets in Section 351 transfers during the year . All of the questions on Schedule B, Form 1120 should be checked "no" for the year. Additional information: Tiger has been rapidly expanding its catering business. This expansion has required a significant amount of new equipment purchases. Tiger sold some of its liquid investments in order to avoid having to take on debt to fund these purchases. Further, Tiger invested heavily in its catering business by significantly increasing its advertising budget. Tiger and its officers expect that revenue increases from these expenditures will begin next year Despite being profitable the past few years, Tiger does not want to carryback net operating loss if amy) generated in the current year. Tiger believes the next few years will be far more profitable and the losses will be of a greater tax benefit in the future. The dividends received by EC during the year were paid by Apple, Inc. Tiger 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, 2014 for $100,000 (no premium or discount paid). The bond was redeemed by New York City on February 1,2017 for $100,000. Both tax basis and proceeds received on this transaction were reported to EC on a form 1099-8 Tiger purchased 200 shares of Apple, Inc. on October 10, 2014 for $1.0.000 (ncluding commisson). 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. Ouring the year, Tiger contributed $8,000 to the American Lung Association. On December 10, Tiger paid Madison Advertising $27,500 to design a new catering campaign for next year. This money represented hailf of the total $55,000 contract price. Tiger expects services will be provided and delivered to EC on about June 30, 2018. Tiger prepaid an insurance premium of $21,000 in September. The new policy is effective October 1, 2018 through September 30, 2019. Tiger's regular tax depreciation for the year i method's) possible on these asset additions without electing any $179 expensing is correctly calculated as $350,000 before considering the wants EC wants to claim the fastest recovery ef 5840.000 (see table belewl Social Security Percent of time Percent of stock devoted to Amount of compensation Name owned number 55% 15% 15% 1 5% 150,000 130,000 130,000 120,000 Raphael Giordano356-87-4322 284-58-4583 100% 100% 100% Sivia Costa Andrea Giordano 487-27-4797 As reported on the balance sheet (see below), on December 31, 2017 the accrued wages were $44,500 and the accrued bonuses were S45,000. The wages and bonuses were payable to Raphael, Silvia Andrea, and Marco. These accrued wages and bonuses were paid on January 20, of 2017. Also, as reported on the balance sheet, on December 31, 2017, the accrued wages were $51,500. The wages were owed to Raphael, Silvia, Andrea, and Marco. The accrued wages were paid on January 22, 2018. All the other employees' wages and bonuses were paid on December 31, 2018. As of December 31, 2016 and December 31, 2017, respectively, Tiger had accrued vacation payable on its books of $62,500 and $73,000. All the 2016 vacation accrual was paid during the period from April 1 through November 30, 2018. As of March 15, 2018 EC had paid none of its 2018 accrual. All of the vacation accrual amounts for both years were owed to employees other than Raphael, Silvia, Andrea, On November 1, a large insurance company paid Tiger a $100,000 deposit to reserve catering event services on March 18, 2018 at the insurance company's annual meeting in New York City. The money is ully refundable until January 15, 2019. Thereafter, half of the deposit becomes non-refundable. changed its has never for its inventory sudmormal goods The rules of Section 26SA (UNICAP) do not apply to Tieer Tieer made no estimated tax payments during the current year tatements (hept on a GAAP basis: Tiger Catering, Inc $ 44,000 177,000 (41,000) s 62,500 145,000 (32,000) 59,000 Less: Allowance for Bad Debts ax-exempt bond 100,000 125,000 2,115,000 (436,500) 125,000 2,955,000 (715,000) 15,750 U.S Treasury Bonds Fixed Assets Less: Acc. Depreciation Prepaid Insurance Prepaid Rent Total Assets: 52,276,500 $2,723,750 Liabilities and Shareholders' Equity Accounts Payable Accrued Bonuses 102,000 131,000 45,000 44,500 45,910 Accrued Vacation 73,000 51,500 100,000 14,000 657,000 1,415,000 Accrued Wages Event Deposits Deferred Tax Liability Note Payable-First Bank of TX (Credit Line) 424,000 Note Payable-EG Capital Equipment Leasing 1,243,000 Capital Stock Additional paid-in Capital Retained Earnings-Unappropriated 1,000 99,000 99,000 Total Liabilities and Shareholders' Equity $2,723,750 $2,276,500