Tax Return – Problem 7: C corporation
Instructions:
Please complete Express Catering, Inc.’s 2018 Form 1120, 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. You may ignore any Alternative Minimum Tax (AMT) calculations and should not prepare any AMT-related forms.
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 55th Avenue
New York City, NY 10027
EIN: 13-9823459
Date of Incorporation: March 17, 2012
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 57th Avenue
New York City, NY 10027
SSN: 356-87-4322
Shares owned 5,500
Silvia Giordano Costa
250 South Main
Hoboken, New Jersey 07030
SSN: 284-58-4583
Shares owned 1,500
Andrea Giordano
65 East 55th Avenue
New York City, NY 10027
SSN: 423-84-2343
Shares owned 1,500
Marco Giordano
160 West 57th Avenue
New York City, NY 10027
SSN-487-27-4797
Shares owned 1,500
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, 2015 for $100,000 (no premium or discount paid). The bond was redeemed by New York City on February 1, 2018 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, 2015 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, 2019.
• EC prepaid an insurance premium of $21,000 in September. The new policy is effective October 1, 2018 through September 30, 2019.
• 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 2018:
Description Date Purchased Amount
5-year MACRS Property October 2, 2018 $480,000
7-year MACRS Property September 10, 2018 $320,000
Delivery Truck (over 6,000 lbs): 5-year MACRS Property October 12, 2018 $40,000
• EC reports employee compensation amounts that remained unpaid at year-end in Accrued Bonuses, Accrued Vacation and Accrued Wages on the balance sheet, as applicable. The table below provides a summary of the balances in these accounts for December 31, 2017 and 2018.
Balance Sheet Date Account Description Account Balance Applicable Employees Payment Date
12/31/2017 Accrued Bonuses $45,000 EC’s Shareholders (father and children) 01/20/2018
12/31/2017 Accrued Vacation $62,500 Unrelated Employees 04/01/2018 – 11/30/2018
12/31/2017 Accrued Wages $44,500 EC’s Shareholders (father and children) 01/20/2018
12/31/2018 Accrued Vacation $73,000 Unrelated Employees Unpaid as of 03/15/2019
12/31/2018 Accrued Wages $51,500 EC’s Shareholders (father and children) 01/22/2019
Supplementary Details (continued):
• On November 1, a large insurance company paid EC a $100,000 deposit to reserve catering event services on March 18, 2019 at the insurance company’s annual meeting in New York City. The deposit is fully refundable until January 15, 2019. Thereafter, half of the deposit becomes non-refundable.
• 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 2018.
• 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:
o April 15th, 2018: $2,000
o September 15th, 2018: $2,000
o June 15th, 2018: $1,500
o December 15th, 2018
• If applicable, EC wants any overpayment credited to its 2019 estimated taxes.
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; 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.
• All questions on Schedule B, Form 1120 should be checked “no” for the current year.
• EC’s gross receipts have never exceeded $5 million annually.
Express Catering, Inc.
Financial Statements (kept on a GAAP basis):
Balance Sheet
Assets: 12/31/2017 12/31/2018
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, 2018
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 8,000
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): $918,840
DO NOT FILE
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Total payments, credits, and section 965 net tax liability (Schedule J, Part III, line 23)
1120 U.S. Corporation Income Tax Return OMB No. 1545-0123 Form For calendar year 2018 or tax year beginning ending
Department of the Treasury
Internal Revenue Service Go to
Check if: Name B Employer identification number
TYPE
OR
PRINT
Consolidated return
(attach Form 851)
A
Number, street, and room or suite no. If a P.O. box, see instructions. C Date incorporated
Personal holding co.
(attach Sch. PH)
2
Personal service corp.
(see instructions)
3
City or town, state or province, country, and ZIP or foreign postal code D Total assets (see instructions)
$
E
2 Cost of goods sold (attach Form 1125-A) 2
3 Gross profit. Subtract line 2 from line 1c 3
4 Dividends and inclusions (Schedule C, line 23, column (a)) 4
5 Interest 5
6 Gross rents 6
7
Income
7 Gross royalties
8 Capital gain net income (attach Schedule D (Form 1120)) 8
9 Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797) 9
10 Other income (see instructions-attach statement) 10
11 Total income. Add lines 3 through 10 11
12 Compensation of officers (see instructions—attach Form 1125-E) 12
13 Salaries and wages (less employment credits) 13
14 Repairs and maintenance 14
15 Bad debts 15
16 Rents 16
17 Taxes and licenses 17
18 Interest (see instructions) 18
19 Charitable contributions 19
20 Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562)
21 Depletion 21
22 Advertising 22
23 Pension, profit-sharing, etc., plans 23
24 Employee benefit programs 24
25
26 Other deductions (attach statement)
27 Total deductions. Add lines 12 through 26 27
28 Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11 28
29a Net operating loss deduction (see instructions) 29a
Deductions (See instructions for limitations on deductions.)
Special deductions (Schedule C, line 24, column (c))
29c
29b
30 Taxable income. Subtract line 29c from line 28. See instructions 30
31 (Schedule J, Part I, line 11) 31
32
33
Estimated tax penalty. See instructions. Check if Form 2220 is attached
33
34
Amount owed. If line 33 is smaller than the total of lines 31, 32, and 34, enter amount owed
34
35
Overpayment. If line 33 is larger than the total of lines 31, 32, and 34, enter amount overpaid
35
Enter amount from line 36 you want: Credited to 2019 estimated tax
36 36
1a
Refunded
b
(1) Initial return (2) Final return (3) Name change (4) Address change
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true,
Sign correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Here
Signature of officer Date Title
Form 1120 (2018)
See instructions. Yes No
For Paperwork Reduction Act Notice, see separate instructions.
4 Schedule M-3 attached Check if:
2018
26
25 Reserved for future use
UYA
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May the IRS discuss this return
with the preparer shown below?
. . . . . 20
Life/nonlife consolidated
return
b
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32
Paid
Preparer
Use Only
Print/Type preparer’s name Date Check PTIN
self-employed
Firm’s name
Firm’s address
Firm’s EIN
Phone no.
Preparer’s signature if
c Add lines 29a and 29b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total tax
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Tax, Refundable Credits,
and Payments
www.irs.gov/Form1120
1c
1a Gross receipts or sales
b Returns and allowances
c
1b
1a
Balance. Subtract line 1b from line 1a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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for instructions and the latest information.
37 37
2018 net 965 tax liability paid (Schedule J, Part II, line 12) . . . . . . . . . . . . . . . . . . . . . . . . . .
EXPRESS CATERING, INC. 13-9823459
257 WEST 55TH AVENUE
New York, NY 10027 2,679,750.
3,925,000.
8,500.
3,916,500.
1,129,850.
2,786,650.
2,800.
3,150.
2,792,600.
530,000.
241,000.
19,000.
35,000.
230,000.
77,000.
140,000.
3,330.
1,190,000.
70,000.
24,000.
203,300.
2,762,630.
29,970.
1,400.
1,400.
28,570.
6,000.
7,000.
1,000.
1,000.
X
Eval Prep
,
DO NOT FILE
Form 1120 (2018) Page 2
(c) Special deductions
(a) X (b)
(a) Dividends and
inclusions
(b) %
1 Dividends from less-than-20%-owned domestic corporations (other than debt-financed
stock) 50
2 Dividends from 20%-or-more-owned domestic corporations (other than debt-financed
stock) 65
3 Dividends on certain debt-financed stock of domestic and foreign corporations
4 Dividends on certain preferred stock of less-than-20%-owned public utilities 23.3
5 Dividends on certain preferred stock of 20%-or-more-owned public utilities 26.7
6 Dividends from less-than-20%-owned foreign corporations and certain FSCs 50
7 Dividends from 20%-or-more-owned foreign corporations and certain FSCs 65
8 Dividends from wholly owned foreign subsidiaries 100
9 Subtotal. Add lines 1 through 8. See instructions for limitations
10
company operating under the Small Business Investment Act of 1958 100
11 Dividends from affiliated group members 100
12 Dividends from certain FSCs
13 Foreign-source portion of dividends received from a specified 10%-owned foreign
14
15 Section 965(a) inclusion
16a Subpart F inclusions derived from the sale by a controlled foreign corporation (CFC) of
17 Global Intangible Low-Taxed Income (GILTI) (attach Form(s) 5471 and Form 8992)
18 Gross-up for foreign taxes deemed paid
Total dividends and inclusions. Add lines 9 through 20. Enter here and on page 1,
19
Total special deductions. Add lines 9 through 22, column (c). Enter here and on page 1, line 29b
20
Form 1120 (2018)
Schedule C
100
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UYA
Dividends from domestic corporations received by a small business investment
see
instructions
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see
instructions
see
instructions
100
100
b
c
corporation (excluding hybrid dividends) (see instructions)
Dividends from foreign corporations not included on line 3, 6, 7, 8, 11, 12, or 13
(including any hybrid dividends) . . . . . . . . . . . . . . . . . . . . . . . . the stock of a lower-tier foreign corporation treated as a dividend (attach Form(s) 5471)
(see instructions)
Subpart F inclusions derived from hybrid dividends of tiered corporations (attach Form(s)
5471) (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other inclusions from CFCs under subpart F not included on line 15, 16a, 16b, or 17
(attach Form(s) 5471) (see instructions) . . . . . . . . . . . . . . . . . . . . . .
line 4
21
22
23
24
IC-DISC and former DISC dividends not included on line 1, 2, or 3 . . . . . . . . . .
Other dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 250 deduction (attach Form 8993) . . . . . . . . . . . . . . . . . . . . .
Deduction for dividends paid on certain preferred stock of public utilities . . . . . . .
EXPRESS CATERING, INC. 13-9823459
2,800. 1,400.
2,800. 1,400.
2,800.
1,400.
DO NOT FILE
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5c
Form 1120 (2018) Page 3
Tax Computation and Payment (see instructions)
1 Check if the corporation is a member of a controlled group (attach Schedule O (Form 1120)). See instructions
2 Income tax. See instructions 2
5a Foreign tax credit (attach Form 1118) 5a
b Credit from Form 8834 (see instructions) 5b
c
d Credit for prior year minimum tax (attach Form 8827) 5d
6 Total credits. Add lines 5a through 5e
7 Subtract line 6 from line 4 7
8 8
9a
3 Base erosion minimum tax (attach Form 8991) 3
4 Add lines 2 and 3 4
Schedule J
6
10 10
Form 1120 (2018)
e 5e
General business credit (attach Form 3800)
UYA
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Bond credits from Form 8912
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Part I-Tax Computation
9c
9a
9b
9d
9e
Personal holding company tax (attach Schedule PH (Form 1120))
b
c
e
d
f
Recapture of investment credit (attach Form 4255)
Recapture of low-income housing credit (attach Form 8611) . . . . . . . . . . . . .
9f
Interest due under the look-back method-completed long-term contracts (attach
Form 8697)
Form 8866)
Interest due under the look-back method-income forecast method (attach
Alternative tax on qualifying shipping activities (attach Form 8902)
Other (see instructions-attach statement)
Total. Add lines 9a through 9f
11 Total tax. Add lines 7, 8, and 10. Enter here and on page 1, line 31
Part II-Section 965 Payments
12
2017 overpayment credited to 2018
2018 estimated tax payments
13
2018 refund applied for on Form 4466
14
15
Combine lines 13, 14, and 15
19
16
17
18
Tax deposited with Form 7004
Withholding (see instructions)
Total payments. Add lines 16, 17, and 18
Refundable credits from:
b
c
a Form 2439
Form 4136
Form 8827, line 8c
d Other (attach statement-see instructions)
20
21 Total credits. Add lines 20a through 20d
Total payment, credits, and section 965 net tax liability. Add lines 19, 21, and 22. Enter here and on page 1,
11
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( )
2018 net 965 tax liability paid from Form 965-B, Part II, column (k), line 2. Enter here and on page 1, line 32 . . . .
19
22 2018 net 965 tax liability from Form 965-B, Part I, column (d), line 2. See instructions . . . . . . . . . . . . . . . 22
23
23
line 33
Part III-Payments, Refundable Credits, and Section 965 Net Tax Liability
(see instructions)
EXPRESS CATERING, INC. 13-9823459
6,000.
6,000.
6,000.
6,000.
7,000.
7,000.
7,000.
7,000.
DO NOT FILE
Corporation Engaged in a U.S. Trade or Business. Enter the number of Forms 5472 attached
UYA Form 1120 (2018)
Form 1120 (2018)
Schedule K (see instructions)
Page 4
Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in any foreign or domestic partnership
If “Yes,” complete (i) through (iv) below.
(including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions.
b
(i) Name of Entity Identification Number
(ii)
(if any)
(iii)
(iv) Maximum
Percentage Owned in
Profit, Loss, or Capital
Employer
6 During this tax year, did the corporation pay dividends (other than stock dividends and distributions in exchange for stock) in
If this is a consolidated return, answer here for the parent corporation and on Form 851 for each subsidiary.
7
8 Check this box if the corporation issued publicly offered debt instruments with original issue discount
9 Enter the amount of tax-exempt interest received or accrued during the tax year
(c)
classes of the corporation’s stock entitled to vote or at least 25% of the total value of all classes of the corporation’s stock?
For rules of attribution, see section 318. If “Yes,” enter:
The corporation may have to file , Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign
If checked, the corporation may have to file , Information Return for Publicly Offered Original Issue Discount Instruments.
Enter the number of shareholders at the end of the tax year (if 100 or fewer)
If the corporation has an NOL for the tax year and is electing to forego the carryback period, check here (see instructions)
10
excess of the corporation’s current and accumulated earnings and profits? See sections 301 and 316
If “Yes,” file F o r m 5 4 5 2 , Corporate Report of Nondividend Distributions. See the instructions for Form 5452.
At any time during the tax year, did one foreign person own, directly or indirectly, at least 25% of the total voting power of all
(a) Percentage owned and (b) Owner’s country
Form 5472
11
12 Enter the available NOL carryover from prior tax years (do not reduce it by any deduction reported on page
Form 8281
$
$
(i) Name of Corporation Identification Number
(ii)
(if any)
(iii)
Owned in Voting
Stock
Country of
Incorporation
Employer (iv) Percentage
Country of
Other Information
a
At the end of the tax year, did the corporation:
Own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of stock entitled to vote of
any foreign or domestic corporation not included on
5
Yes No
If “Yes,” complete (i) through (iv) below.
Form 851, Affiliations Schedule? For rules of constructive ownership, see instr.
Organization
1, line 29a.)
a
At the end of the tax year:
Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax-exempt
organization own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of the
4
b Did any individual or estate own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all
classes of the corporation’s stock entitled to vote? If “Yes,” complete Part II of Schedule G (Form 1120) (attach Schedule G)
corporation’s stock entitled to vote? If “Yes,” complete Part I of Schedule G (Form 1120) (attach Schedule G)
a
See the instructions and enter the:
Business activity code no.
2
b Business activity
c Product or service
1 Check accounting method:
3 Is the corporation a subsidiary in an affiliated group or a parent-subsidiary controlled group?
If “Yes,” enter name and EIN of the parent corporation
a Cash b Accrual c Other (specify)
EXPRESS CATERING, INC. 13-9823459
X
722300
CATERING
CATERING
X
X
X
X
X
X
0
1,400.
4
X
DO NOT FILE
UYA Form 1120 (2018)
Form 1120 (2018)
Schedule K (continued from page 4)
Page 5
Other Information
18
Yes No
17 During or subsequent to this tax year, but before the filing of this return, did the corporation dispose of more than 65% (by value)
15a
Is the corporation required to file Schedule UTP (Form 1120), Uncertain Tax Position Statement? See instructions
If “Yes,” complete and attach Schedule UTP.
14
b
Did the corporation make any payments in 2018 that would require it to file Form(s) 1099?
If “Yes,” did or will the corporation file required Forms 1099?
13 Are the corporation’s total receipts (page 1, line 1a, plus lines 4 through 10) for the tax year
16 During this tax year, did the corporation have an 80% or more change in ownership, including a change due to redemption of its
own stock?
tax year less than $250,000?
If “Yes,” the corporation is not required to complete Schedules L, M-1, and M-2. Instead, enter the total amount of cash
distributions and the book value of property distributions (other than cash) made during the tax year $
21
20
19
22
24
23
and its total assets at the end of the
of its assets in a taxable, non-taxable, or tax deferred transaction?
Did the corporation receive assets in a section 351 transfer in which any of the transferred assets had a fair market basis or fair
market value of more than $1 million?
25
a
b
During the corporation’s tax year, did the corporation make any payments that would require it to file Forms 1042 and 1042-S
under chapter 3 (sections 1441 through 1464) or chapter 4 (sections 1471 through 1474) of the Code?
Is the corporation operating on a cooperative basis?
During the tax year, did the corporation pay or accrue any interest or royalty for which the deduction is not allowed under section
267A? See instructions
If “Yes,” enter the total amount of the disallowed deductions $
Does the corporation have gross receipts of at least $500 million in any of the 3 preceding tax years? (See sections 59A(e)(2)
and (3))
If “Yes,” complete and attach Form 8991.
Did the corporation have an election under section 163(j) for any real property trade or business or any farming business in effect
during the tax year? See instructions
Does the corporation satisfy
year, or prior year carryover, excess business interest expense? See instructions
one of the following conditions and the corporation does not own a pass-through entity with current
The corporation’s aggregate average annual gross receipts (determined under section 448(c)) for the 3 tax years preceding the
current tax year do not exceed $25 million, and the corporation is not a tax shelter, or
The corporation only has business interest expense from (1) an electing real property trade or business, (2) an electing farming
business, or (3) certain utility businesses under section 163(j)(7).
If “No,” complete and attach Form 8990.
Is the corporation attaching Form 8996 to certify as a Qualified Opportunity Fund?
If “Yes,” enter amount from Form 8996, line 13 $
EXPRESS CATERING, INC. 13-9823459
X
X
XX
X
X
X
XX
X
X
X
X
X
Other decreases (itemize):
Schedule M-2
Schedule M-1
Schedule L
Form 1120 (2018) Page 6
Balance Sheets per Books Beginning of tax year End of tax year
Assets (a) (b) (c) (d)
1 Cash
2a Trade notes and accounts receivable
b Less allowance for bad debts
3 Inventories
4 U.S. government obligations
5 Tax-exempt securities (see instructions)
6 Other current assets (attach statement)
7 Loans to shareholders
8 Mortgage and real estate loans
9 Other investments (attach statement)
10a Buildings and other depreciable assets
b Less accumulated depreciation
11a Depletable assets
b Less accumulated depletion
12 Land (net of any amortization)
13a Intangible assets (amortizable only)
b Less accumulated amortization
14 Other assets (attach statement)
15 Total assets
Liabilities and Shareholders’ Equity
16 Accounts payable
17 Mortgages, notes, bonds payable in less than 1 year
18 Other current liabilities (attach statement)
19 Loans from shareholders
20 Mortgages, notes, bonds payable in 1 year or more
21 Other liabilities (attach statement)
22 Capital stock: a Preferred stock
b Common stock
23 Additional paid-in capital
24 Retained earnings-Appropriated (attach statement)
25 Retained earnings-Unappropriated
27 Less cost of treasury stock
28
Reconciliation of Income (Loss) per Books With Income per Return
1 Net income (loss) per books Income recorded on books this year not
included on this return (itemize):
7
2 Federal income tax per books
3 Excess of capital losses over capital gains Tax-exempt interest $
Income subject to tax not recorded on books
this year (itemize):
4
Deductions on this return not charged
against book income this year (itemize):
8
Expenses recorded on books this year not
deducted on this return (itemize):
5
a Depreciation
a Depreciation b Charitable contributions
b Charitable contributions $
c Travel and entertainment $
9 Add lines 7 and 8
6 Add lines 1 through 5 10
Analysis of Unappropriated Retained Earnings per Books (Line 25, Schedule L)
1 Balance at beginning of year 5 Distributions: a Cash
2 Net income (loss) per books b Stock
3 Other increases (itemize): c Property
6
7 Add lines 5 and 6
4 Add lines 1, 2, and 3 8 Balance at end of year (line 4 less line 7)
$
$
26
Form 1120 (2018)
$
UYA
. . . . . . . . . . . . . . . . . . . . .
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.
. . . . . . . . . . . . . Income (page 1, line 28) – line 6 less line 9
Note: The corporation may be required to file Schedule M-3. See instructions.
Total liabilities and shareholders’ equity
( )
( )
( )
( )
( )
( )
( )
( )
( )
( )
EXPRESS CATERING, INC. 13-9823459
62,500.
145,000. 177,000.
32,000. 113,000. 41,000. 136,000.
59,000. 96,000.
125,000. 125,000.
100,000.
100,000.
2,115,000. 2,955,000.
436,500. 1,678,500. 715,000. 2,240,000.
38,500. 82,750.
2,276,500. 3,716,750.
102,000.
152,000. 271,320.
1,667,000. 2,072,000.
45,910. 14,000.
1,000. 1,000. 1,000. 1,000.
99,000. 99,000.
209,590. 1,128,430.
2,276,500. 3,716,750.
918,840.
21,910.
30,000.
4,670.
1,700.
Stmt. attached 26,500. 32,870.
1,003,620.
1,400.
Stmt. attached 1,400.
911,500.
Stmt. attached 60,750. 972,250.
973,650.
29,970.
209,590.
918,840.
1,128,430. 1,128,430.
1,037,000.
131,000.
DO NOT FILE
Form 1125-A
(Rev. November 2018)
Department of the Treasury
Internal Revenue Service
Cost of Goods Sold
Attach to Form 1120, 1120-C, 1120-F, 1120S, or 1065.
OMB No. 1545-0123
Name Employer identification number
1 Inventory at beginning of year 1
2 Purchases 2
3 Cost of labor 3
4 Additional section 263A costs (attach schedule) 4
5 Other costs (attach schedule) 5
6 Total. Add lines 1 through 5 6
7 Inventory at end of year 7
8 Cost of goods sold. Subtract line 7 from line 6. Enter here and on Form 1120, page 1, line 2 or the
appropriate line of your tax return. See instructions 8
9a Check all methods used for valuing closing inventory:
(i) Cost
(ii) Lower of cost or market
(iii) Other (Specify method used and attach explanation.)
b Check if there was a writedown of subnormal goods
c Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970)
d If the LIFO inventory method was used for this tax year, enter amount of closing inventory computed
under LIFO 9d
e If property is produced or acquired for resale, do the rules of section 263A apply to the entity? See instructions Yes No
f Was there any change in determining quantities, cost, or valuations between opening and closing inventory? If “Yes,”
attach explanation Yes No
For Paperwork Reduction Act Notice, see instructions. Form 1125-A (Rev. 11-2018)
UYA
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Go to www.irs.gov/Form1125A for the latest information.
EXPRESS CATERING, INC. 13-9823459
59,000.
1,166,850.
1,225,850.
96,000.
1,129,850.
X
X
X
DO NOT FILE
Form 1125-E
(Rev. October 2016)
Department of the Treasury
Internal Revenue Service
Compensation of Officers
Attach to Form 1120, 1120-C, 1120-F, 1120-REIT, 1120-RIC, or 1120S.
Information about Form 1125-E and its separate instructions is at
OMB No. 1545-0123
Name Employer identification number
Note: Complete Form 1125-E only if total receipts are $500,000 or more. See instructions for definition of total receipts.
(a) Name of officer (b) Social security number
(c) Percent of
time devoted to
business
Percent of stock owned
(d) Common (e) Preferred
(f) Amount of
compensation
1 % % %
% % %
% % %
% % %
% % %
% % %
% % %
% % %
% % %
% % %
% % %
% % %
% % %
% % %
% % %
% % %
% % %
% % %
% % %
% % %
2 Total compensation of officers 2
3 Compensation of officers claimed on Form 1125-A or elsewhere on return 3
4 Subtract line 3 from line 2. Enter the result here and on Form 1120, page 1, line 12 or the
appropriate line of your tax return 4
For Paperwork Reduction Act Notice, see separate instructions. Form 1125-E (Rev. 10-2016)
UYA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . .
www.irs.gov/form1125e.
(see instructions)
EXPRESS CATERING, INC. 13-9823459
RAPHAEL GIORDANO 356-87-4322 100.00 55.00 150,000.
SILVIA G COSTA 284-58-4582 100.00 15.00 130,000.
ANDREA GIORDANO 423-84-2343 100.00 15.00 130,000.
MARCO GIORDANO 487-27-4797 100.00 15.00 120,000.
530,000.
530,000.
DO NOT FILE
Total Other Deductions
2018 Other Deductions – Supporting Details for Form 1120, Line 26
Employer identifying number
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49. 49
50. 50
Name(s) shown on return
51. 51
52. 52
53. 53
54. 54
EXPRESS CATERING, INC. 13-9823459
EMPLOYEE TRAINING 3,600.
INSURANCE 35,500.
MEALS 1,700.
OFFICE SUPPLIES 5,400.
TELEPHONE 14,500.
TRAVEL 600.
UTILITIES 142,000.
203,300.
DO NOT FILE
Business Name Federal Employer ID Number
Schedule L – Current Assets
Description
2018
Beginning of tax year End of tax year
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
14.
13.
15.
Totals
Description Beginning of tax year End of tax year
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
14.
13.
15.
Totals
Schedule L – Other Assets
EXPRESS CATERING, INC. 13-9823459
PREPAID ADVERTISING 27,500.
PREPAID INSURANCE 15,750.
PREPAID RENT 38,500. 39,500.
38,500. 82,750.
DO NOT FILE
Business Name Federal Employer ID Number
Schedule L – Other Investments
Description
2018
Beginning of tax year End of tax year
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
14.
13.
15.
Totals
EXPRESS CATERING, INC. 13-9823459
PUBLICLY TRADED SECURITY 100,000.
100,000.
DO NOT FILE
Business Name Federal Employer ID Number
Schedule L – Current Liabilities
Description
2018
Beginning of tax year End of tax year
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
14.
13.
15.
Totals
Description Beginning of tax year End of tax year
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
14.
13.
15.
Totals
Schedule L – Other Liabilities
EXPRESS CATERING, INC. 13-9823459
ACCRUED BONUSES 45,000.
ACCRUED VACATION 62,500. 73,000.
ACCRUED WAGES 44,500. 51,500.
EVENT DEPOSIT 100,000.
152,000. 224,500.
DEFERRED TAX LIABILITY 45,910. 14,000.
45,910. 14,000.
DO NOT FILE
2018 Schedule M-1 Income Reconciliation Worksheet
Name shown on Form 1120 Federal Employer ID Number
Line 4: Income subject to tax not recorded on books this year
Line 5: Expenses recorded on books this year not deducted on this return
Line 7: Income recorded on books this year not included on this return
Line 8: Deductions on this return not charged against book income this year
1
2
3
4
5
6
7
1
2
3
4
5
6
7
8
9
10
12
11
Total
Total
Total
13
8
1
2
3
4
5
6
7
8
15
14
1
2
3
4
5
6
7
8
9
10
12
11
13
15
14
1
2
3
4
5
6
7
8
1
2
3
4
5
6
7
8
1
2
3
4
5
6
7
8
9
10
12
11
Total
13
15
14
1
2
3
4
5
6
7
8
9
10
12
11
13
15
14
EXPRESS CATERING, INC. 13-9823459
Accrued Vacation/Bonus 17,500.
Allowance for Bad Debts 9,000.
26,500.
Accrued Vacation/Bonus 45,000.
Prepaid Expenses 15,750.
60,750.
