Complete celebrity catering service inc form 1120

Assignment Help Taxation
Reference no: EM131381805

CCS Corporate Tax Return Problem

Rachael Ray, Paula Deen and Gordon Ramsay each own one-third of the common stock of Celebrity Catering Services, Inc. (CCS). CCS was incorporated on February 2, 2009. 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 540 Waverly Way Burbank, CA 91501

Its employer ID is 38-4743474

CCS's business activity is catering food services. Its business activity code is 722300.

The shareholders also work as officers for the corporation as follows:

  • Rachael is the chief executive officer and president, (SS# 231-54-8976). Her salary this year is $180,000.
  • Paula is the executive VP and Chief operating officer (SS#798-56-3241). Her salary this year is $120,000.
  • Gordon is the VP of Finance (SS# 879-21-4536). His salary this year is $150,000.

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 $36,500 each. Its tax liability last year was $125,800. 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. $43,000 of that contribution exceeded the amount deductible and was carried forward to the current year.

CCS paid a dividend of $30,000 to each of its shareholders on November 1. CCS had ample earnings and profits (E&P) to absorb the distribution.

Income Statement

Income



Sales


$2,600,000

Sales returns and allowances


(5,000)

Net sales


2,595,000

Cost of goods sold


450,0001

Gross profit


2,145,000

Capital loss


($17,000)

Dividend income


25,0002

Interest income


8,0003

Total income


$2,161,000

Expenses



Salaries-officers

$450,000


Salaries and wages - other

625,000


Bad Debt

15,000


Meals & Entertainment

28,000


Repairs and Maintenance

6,000


Property Taxes

13,000


State Income Tax

23,000


Payroll Taxes

107,500


Charitable Contribution

15,500


Equipment Rent

20,000


Warehouse Rent

220,000


Interest

5,0004


Advertising

62,000


Professional Services

15,000


Depreciation

10,0005


Employee benefits Programs

53,040


Other Miscellaneous Expenses

15,2006


Total expenses


1.683,240

Net income before taxes


$477,760

Federal income taxes


[161,180]

Net income after taxes


$316,580

Balance Sheet

Assets

1/1/2016

12/31/16

Cash

$180,000

$251,760

Trade and accounts receivables

560,000

570,000

Allowance for Doubtful Accounts

(60,000)

(54,000)7

Inventories

140,000

150,000

U.S. government bonds

20,000

20,000

State & Local bonds

120,000

120,000

Investment In Stock

400,000

353,0008

Prepaid Federal Income Taxes

0

1,686

Property, plant and equipment

140,000

160,000

Accumulated depreciation

(50,000)

(60,000)

Other assets

20.000

45,000

Total Assets

$1,470,000

$1,557,446

Liabilities and Owners' Equity



Accounts payable

$280,000

$130,000

Income Taxes Payable

5,000

0

Deferred Tax Liability

10,000

26,866

Other current liabilities

5,000

21,000

Other Liabilities

40,000

23,000

Capital stock

400,000

400,000

Retained earnings

730,000

956,580

Total Liabilities and Owners' Equity

$1,470,000

1,557,446

Required:

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.

FORM 4562 is not required. (Do not complete Form 4562 [depreciation calculation] since you do not have all the information).

If any information is missing, use reasonable assumptions to fill in the gaps and list those assumptions as an attachment.

The forms schedules and instructions can be found at www.irs.gov and download the necessary forms.

Reference no: EM131381805

Questions Cloud

Linear relationship between the two variables : In a regression, the F statistic value is 6.3. Assume the sample size used was n = 104, and conduct an F test for the existence of a linear relationship between the two variables.
What led to the development of each policy : The policy that will be covered in this assignment is domestic violence. I just need two (2) slides with very detailed speaker notes in each slide. The two (2) states that we are comparing to are the state of florida and the state of north carolin..
Calculate the firms cost of equity using the capm : FIN515- Calculate the firm's cost of equity using the capital asset pricing model (CAPM). The formula for the CAPM is ri = rf+ βi × (RMkt - rf). Assume the risk-free rate (rf) is the current rate of 10-year U.S. Treasury Bonds.
Conduct an f test for the existence of a linear relationship : In a simple linear regression analysis, it is found that b1 = 2.556 and s(b1) = 4.122. The sample size is n = 22. Conduct an F test for the existence of a linear relationship between the two variables.
Complete celebrity catering service inc form 1120 : Rachael Ray, Paula Deen and Gordon Ramsay each own one-third of the common stock of Celebrity Catering Services, Inc. (CCS). Complete Celebrity Catering Service Inc.'s (CCS) Form 1120 and all related schedules. Be sure to attach schedules for any li..
Is there any apparent model inadequacy : Produce residual plots for the regression of given problem. Is there any apparent model inadequacy?- Run a simple linear regression of these five pairs of numbers and estimate a linear relationship between income and percentage growth in wealth.
What would happen if the population was left unattended : CJHS420:Identify the characteristics and specific needs of the selected special population.Describe how the problems associated with your special population can be resolved.What would happen if the population was left unattended and not managed prope..
Estimate the simple linear regression relationship : Recently, research efforts have focused on the problem of predicting a manufacturer's market share by using information on the quality of its product.- Estimate the simple linear regression relationship between market share and product quality rati..
Explain what that margin of error means : Find the margin of error for the 2007 poll if we want 90% confidence in our estimate of the percent of national adults who are baseball fans.

Reviews

Write a Review

 

Taxation Questions & Answers

  The short-run firm supply curve each of the subsequent

the short-run firm supply curve each of the subsequent situations could exist for a perfectly competitive firm in the

  What are income taxes and income tax expense

What are income taxes and income tax expense (or provision for income taxes)? In the financial statements and notes of your selected company, identify cash paid for income taxes as well as income tax expense.

  Is the tax position of the taxpayer likely to change

In the given independent situations, is the tax position of the taxpayer likely to change? -- Explain why or why not.

  Compute teppers 2013 cost recovery deductions

Compute Teppers 2013 cost recovery deductions related to the assets listed - Tepper reported taxable income

  How much is the realized gain

What is the basis in the like-kind property received and what is the basis in the not like-kind property received

  Institutional framework of taxation in australia

Henry told us in his guide to the Institutional Framework of Taxation in Australia that the Australian Taxation System is one of the most complex in the world and is made up of approximately 125 taxes including taxes such as Income Tax

  Prepare suitable entries for both user and scape

Prepare suitable entries for both User and Scape from the inception of the lease through the second rental payment on 1st April, 2013. Depreciation is recorded at the end of each fiscal year.

  Calculate the taxable income and tax payable

CALCULATE the TAXABLE INCOME and TAX PAYABLE of John for the year ended 30 June 2014.

  Explain malaysian taxation

Critically analyze whether any Government in the world is always administer their nation in the interest of citizens. Hint: You may include various examples in your discussion. Bear in mind that your discussions should not be politically motivate..

  What are some of these multiple policy objects the australia

What are some of these multiple policy objects the Australian tax and transfer system tries to achieve? How does the system overreach and is hence overburdened currently? How do you propose to rationalise the tax and transfer system of Australia to o..

  Fair market values and tax adjusted bases in return

Ron and Hermione formed Wizard Corporation on January 2.  Ron contributed cash of $200,000 in return for 50 percent of the corporation’s stock.  Hermione contributed a building and land with the following fair market values and tax-adjusted bases in ..

  Advise justin of the capital gains tax implications

Advise Justin of the capital gains tax implications if he sells these assets now

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd