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UPDATE PROFIT AND LOSS, If any information is missing, use reasonable assumptions to fill in the gaps and list those assumptions as an attachment. Also
UPDATE PROFIT AND LOSS, If any information is missing, use reasonable assumptions to fill in the gaps and list those assumptions as an attachment.
Also list on the attachment any tax positions that you took in the completion of the return, such as depreciation method, elections, etc. Rachael Ray, Paula Deen and Gordon Ramsay each own onethird of the common stock of Celebrity Catering Services, Inc. CCS CCS was incorporated on February 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 Waverly Way Burbank, CA
Its employer ID is
CCSs business activity is catering food services. Its business activity code is
The shareholders also work as officers for the corporation as follows:
o Rachael is the chief executive officer and president, SS#
o Paula is the executive VP and Chief operating officer SS#
o Gordon is the VP of Finance SS#
All officers devote of their time to the business and all of the officers are US citizens.
CCS uses the accrual method of accounting, and the yearend as listed on the financial statement.
Its tax liability last year was $ If it has overpaid its federal tax liability, CCS would like to receive a refund.
CCS paid a dividend of $ to each of its three shareholders on December CCS had ample earnings and profits E&P to absorb the distribution. PROFIT & LOSS
CCSS inventoryrelated purchases during the year were $ and direct labor of $ It values its inventory based on cost using FIFO inventory cost flow method. CCS must use the A method for valuing its inventory for tax purposes the beginning balance of A adjustment is $ and the ending value is $ The current year additional A costs are $ of the officers salary.
CCSs dividend income came from Sinful Desserts, Inc. SD CCS owned shares of stock in SD at the beginning of the year this represented of SDs outstanding stock.
$ was from a City of Irvine bond that was used to fund public activities issued in $ was from an Oceanview City bond used to fund public activities issued in $ was from a US Treasury Bond and the rest was from a money market account at Bank of America.
The officers salaries included are: Rachael Ray $; Paula Deen $ and Gordon Ramsey $
The meals were all at restaurants.
The interest expense was from an ordinary and necessary deductible business loan.
None of the depreciation will be claimed on A The MACRS depreciation has been computed as $ for assets not purchased during the current fiscal year.
Includes $ for premiums paid on term life insurance policies for which CCS is the beneficiary. The policies cover Rachael, Paula and Gordon. Also included is $ of speeding tickets and parking tickets for food delivery. The rest are other miscellaneous, ordinary and necessary expenses. tableIncomeSales$Sales returns and allowances,,Net sales,,Cost of goods sold,,Gross profit,,tableNet gainloss on sale of investments andequipment$Dividend income,,Interest income,,Total income,,$ExpensesSalaries and wages,Bad Debt,MealsEntertainmentRepairs and Maintenance,State Income Tax,Payroll Taxes,Charitable Contribution,Equipment Rent,Warehouse Rent,InterestAdvertisingProfessional Services,DepreciationEmployee benefits Programs,Other Miscellaneous Expenses,Total expenses,,Net income before taxes,,$Federal income taxes,,Net income after taxes,,$
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