RachaelRay,Paula Deen andGordon Ramsayeach ownone-thirdofthecommonstock ofCelebrityCateringServices,Inc.(CCS).CCSwasincorporated onFebruary2,2009. Ithasonlyoneclass ofstock outstanding andoperatesasaCcorporation fortaxpurposes.CCScaterstoalltypes ofsocial events.

CCSislocatedat540WaverlyWayBurbank,CA91501

ItsemployerIDis38-4743474

CCS'sbusinessactivityiscateringfood services.Itsbusinessactivitycode is722300.

Theshareholders alsowork asofficersforthecorporationasfollows:o Rachaelisthechief executiveofficerandpresident,(SS#231-54-8976).Hersalarythisyearis$215,000.

oPaula istheexecutiveVPandChief operatingofficer(SS#798-56-3241).Hersalarythisyearis$160,000.

oGordonistheVPofFinance(SS#879-21-4536).Hissalarythisyearis$145,000.

Allofficersdevote100% oftheir timetothebusinessandalloftheofficersareUScitizens.

CCSusestheaccrualmethodofaccountingandhasacalendaryear-end.

CCSmade fourequal quarterlyestimatedtaxpaymentsof$45,000each. Itstaxliabilitylastyearwas$165,800.Ifithasoverpaiditsfederaltaxliability,CCSwouldliketoreceivearefund.

Intheprior year, thecompanymade alarge charitablecontribution. $35,000ofthatcontributionexceededtheamountdeductibleandwascarriedforwardtothecurrentyear.

CCSpaidadividendof$72,000toeach ofitsshareholders onNovember1.CCShadampleearningsandprofits(E&P) toabsorbthedistribution.

Task: In order to successfully complete this assignment you must: Complete Celebrity Catering Service Inc.'s (CCS) Form 1120 and all related schedules. Be sure to attach schedules for any line item, which indicates one is required on the 1120. This includes line items that may require you to create a schedule that identifies the various items that are included in a line on the return these usually indicate \"attach schedule.\" Other lines will indicate specifically which schedule must be included with the return. The returns must be in.pdf format. The student can use either: o Forms schedules and instructions found at www.irs.gov o Tax preparation software may assignment, but submission format. Include a list of all the assumptions that you made in return. This should be return. FORM 4562 is not required. 4562 [depreciation calculation] all the information). order to earn maximum be sure to review the Rachael Ray, the Paula Deen of common (CCS). CCS It has only one a C corporation all types of social be used must to still prepare be in your .pdf judgments, decisions and order to complete the submitted along with your (Do not since complete you do Form not have Criteria for credit grading for this rubric. Success: and Gordon Ramsay each stock of Celebrity Catering was incorporated on February class of stock outstanding and for tax purposes. CCS events. 1 | In assignment own one-third Services, Inc. 2, 2009. operates as caters to Page CCS is located at 540 Waverly Way Burbank, CA 91501 Its CCS's employer ID is 38-4743474 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 $215,000. o Paula is the executive VP and Chief operating officer (SS#798- 56-3241). Her salary this year is $160,000. o Gordon is the VP of Finance (SS# 879-21-4536). His salary this year is $145,000. 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 $45,000 each. Its tax liability last year was $165,800. If it has overpaid its federal tax liability, CCS would like to receive a refund. In the prior year, the company made a large charitable contribution. $35,000 of that contribution exceeded the amount deductible and was carried forward to the current year. CCS profits paid a dividend on November 1. (E&P) to absorb of the Income $72,000 CCS had distribution. to each ample of its earnings shareholders and Statement Income Sales $3,100,000 Sales returns Net sales Cost of and allowances (40,500) 3,059,500 930,0001 goods sold 1 CCS'S inventory-related direct labor of cost using FIFO 263A method the beginning purchases during $600,000. It inventory cost flow for valuing its balance of 263A the year values its method. inventory adjustment 2 were $340,000 and inventory based on CCS must use the for tax purposes is $10,000 and | Page Gross profit 2,129,500 Capital loss ($16,000) 29,0002 7,0003 $2,149,500 Dividend income Interest income Total income Expenses Salaries and Bad Meals Repairs Property State Payroll wages 975,000 Debt & and 37,000 26,000 8,000 13,000 23,000 107,500 Entertainment Maintenance Taxes Income Tax Taxes the ending 263A costs 2 CCS's dividend owned 10,000 the year 3 $1,200 was from activities used to a US market account value are is $12,000. $87,000 of income came shares of this represented a City (issued in fund public Treasury at Bank from stock 16% Sinful in of of Irvine bond 2006), $1,300 was activities (issued Bond and the of America. The the current officer's year additional salary. Desserts, Inc. SD at the SD's outstanding that from in rest was an 2005), was 3 (SD) CCS beginning stock. used to Oceanview $ 900 from a | of fund public City bond was from money Page Charitable Equipment Warehouse Contribution Rent Rent Interest Advertising Professional Depreciation 42,000 40,000 200,000 5,0004 62,000 15,000 14,0005 Services Employee benefits Programs Other Miscellaneous Expenses Total expenses Net income before Federal income taxes Net after income 53,000 15,2006 1.635,700 taxes $513,800 [172,584] taxes $341,216 Balance Sheet 1/1/2016 Assets Cash Trade $180,000 and Allowance accounts for receivables Doubtful Accounts Inventories 4 The interest expense 5 CCS tax depreciation depreciation could $17,000 of 179 6 Includes $3,600 for which Rachael, Paula necessary 7 CCS wrote 12/31/16 of was from using MACRS be claimed expenses. a 586,000 606,000 (60,000) (69,000)7 140,000 150,000 deductible is on business $42,000. 1125A. for premiums CCS is the and Gordon. expenses. paid on beneficiary. The rest $28,000 uncollectible during as $149,800 term are loan. None of includes This the life insurance policies The policies cover miscellaneous ordinary and the 4 year. | Page U.S. State government & Local Investment In Prepaid Federal Property, plant Accumulated Other Total Accounts payable Owners' 400,000 354,0008 140,000 13,431 160,000 (50,000) (64,000) 20.000 $1,496,000 25,000 $1,465,231 0 $306,000 Payable Tax Liability current liabilities Liabilities stock earnings Liabilities 20,000 120,000 Equity Taxes Retained Total Equity Income Taxes and equipment assets Assets and 20,000 120,000 Stock depreciation Liabilities Income Deferred Other Other Capital bonds bonds and Owners' $130,000 5,000 10,000 5,000 40,000 400,000 0 16,015 21,000 43,000 400,000 730,000 855,216 $1,496,000 1,465,231 Required: Complete Celebrity Catering Service related schedules. Be sure to line item which indicates one 1120. FORM 4562 is not required. (Do not [depreciation calculation] since you do not If 8 On any in information the gaps October $30,000. April 18, percent is and Inc.'s (CCS) Form 1120 and attach schedules for is required on the complete have all all any Form 4562 the information). missing, use reasonable list those assumptions as 15, 2016 CCS sold 1,000 shares It had originally purchased 2010 for $46,000. After the of SD. 5 assumptions to an attachment. fill of SD stock for these shares on sale CCS owns 14.4 | Page The forms www.irs.gov and schedules download and the instructions necessary can be forms. 6 found at | Page