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Tax Return 1 Problem C Corporation - Form 1 1 2 0 Required: Complete Blue Catering Service Inc. ' s ( BCS ) 2 0
Tax Return Problem C Corporation Form Required: Complete Blue Catering Service Inc.s BCS Form along with its related forms and schedules, using the information provided below. Form for depreciation is not required. Include the amount of tax depreciation given in the problem on the appropriate line on the first page of Form If any information is missing, use reasonable assumptions to fill in the gaps. The forms, schedules, and instructions can be found at the IRS website IRS Website The instructions can be helpful in completing the forms. Facts: Cara Siler, Janna Funk, and Valerie Cloward each own onethird of the common stock of Blue Catering Services Inc. BCS BCS was incorporated on February It has only one class of stock outstanding and operates as a C corporation for tax purposes. BCS caters all types of social events throughout southern California. BCS is located at Waverly Way, San Diego, California BCSs Employer Identification Number is BCSs business activity is catering food and services. Its business activity code is The shareholders also work as officers for the corporation as follows: Cara is the chief executive officer and president Social Security number Janna is the executive vice president and chief operating officer Social Security number Valerie is the vice president of finance Social Security number All officers devote percent of their time to the business and all officers are US citizens. BCS made payments that require it to file several Form s These forms will all be filed prior to the tax return. BCS uses the accrual method of accounting and has a calendar yearend. BCS made four equal estimated tax payments of $ each. Its tax liability last year was $ If it has overpaid its federal tax liability, BCS would like to receive a refund. BCS paid a dividend of $ to its shareholders on November BCS had ample earnings and profits E&P to absorb the distribution. Other Notes: BCSs inventoryrelated purchases during were $ It values its inventory based on cost using the FIFO inventory cost flow method. Assume the rules of $ do not apply to BCS Of the $ interest income, $ was from a City of Irvine bond issued in $ was from an Oceanside city bond issued in $ was from a US Treasury bond, and the remaining $ was from a money market account. BCSs dividend income came from Clever Cakes Inc. CC BCS owned shares of the stock in Clever Cakes at the beginning of the year. This represented percent of SSM outstanding stock. On October sold shares of its CC stock for $ It had originally purchased these shares on April for $ After the sale, BCS owned percent of CC BCSs compensation is as follows: Cara, $ Janna, $ Valerie, $ Other, $ BCS wrote off $ in accounts receivable as uncollectible during the year. BCSs tax depreciation was $ None of the depreciation should be claimed on Form A The $ interest expense was from a business loan. Other expenses include $ for premiums paid on term life insurance policies for which BCS is the beneficiary. The policies cover the lives of Cara, Janna, and Valerie. FINANCIAL STATEMENTS The following is BCSs audited income statement for : tabletableBCS Income StatementFor year ending December Revenue from sales,$
Tax Return Problem
C Corporation Form
Required:
Complete Blue Catering Service Inc.s BCS Form along with its related forms and schedules, using the information provided below.
Form for depreciation is not required. Include the amount of tax depreciation given in the problem on the appropriate line on the first page of Form
If any information is missing, use reasonable assumptions to fill in the gaps.
The forms, schedules, and instructions can be found at the IRS website IRS Website The instructions can be helpful in completing the forms.
Facts:
Cara Siler, Janna Funk, and Valerie Cloward each own onethird of the common stock of Blue Catering Services Inc. BCS BCS was incorporated on February It has only one class of stock outstanding and operates as a C corporation for tax purposes. BCS caters all types of social events throughout southern California.
BCS is located at Waverly Way, San Diego, California
BCSs Employer Identification Number is
BCSs business activity is catering food and services. Its business activity code is
The shareholders also work as officers for the corporation as follows:
Cara is the chief executive officer and president Social Security number
Janna is the executive vice president and chief operating officer Social Security number
Valerie is the vice president of finance Social Security number
All officers devote percent of their time to the business and all officers are US citizens.
BCS made payments that require it to file several Form s These forms will all be filed prior to the tax return.
BCS uses the accrual method of accounting and has a calendar yearend.
BCS made four equal estimated tax payments of $ each. Its tax liability last year was $ If it has overpaid its federal tax liability, BCS would like to receive a refund.
BCS paid a dividend of $ to its shareholders on November BCS had ample earnings and profits E&P to absorb the distribution.
Other Notes:
BCSs inventoryrelated purchases during were $ It values its inventory based on cost using the FIFO inventory cost flow method. Assume the rules of $ do not apply to BCS
Of the $ interest income, $ was from a City of Irvine bond issued in $ was from an Oceanside city bond issued in $ was from a US Treasury bond, and the remaining $ was from a money market account.
BCSs dividend income came from Clever Cakes Inc. CC BCS owned shares of the stock in Clever Cakes at the beginning of the year. This represented percent of SSM outstanding stock.
On October sold shares of its CC stock for $ It had originally purchased these shares on April for $ After the sale, BCS owned percent of CC
BCSs compensation is as follows:
Cara, $
Janna, $
Valerie, $
Other, $
BCS wrote off $ in accounts receivable as uncollectible during the year.
BCSs tax depreciation was $ None of the depreciation should be claimed on Form A
The $ interest expense was from a business loan.
Other expenses include $ for premiums paid on term life insurance policies for which BCS is the beneficiary. The policies cover the lives of Cara, Janna, and Valerie.
FINANCIAL STATEMENTS
The following is BCSs audited income statement for :
tabletableBCS Income StatementFor year ending December Revenue from sales,$
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