ormation is missing, use reasonable assumptions to fill n the gaps. lgnore any Alternative Minimum Tax (AMT) calculations and do not prepare any AMT related forms. complete Tiger Catering, Inc.'s 2018 tax return based upon the information provided below. If corporation with a calendar year end. EC operates a delicatessen/bakery intouston, TX that specializes in mobile food c Tiger Catering Iinc. () is organired in the state of New York as a corporation and is tased as a "C catering for events and gatherings within the tri-state area. EC's address, employer dentification number (EIN), and date of incorporation are as follows: Tiger Catering, Inc. 257 West 55 Avenue Houston, TX 77004 EIN-13-9823459 Date Incorporated: March 17, 2011 Tigers address has not changed since its inception. Tiger has only common shares issued (no preferred stock). There are currently 10,000 shares of Tiger common stock issued and outstanding. Tiger is owned by four shareholders from the same family: Raphael Giordano (father) and his three children Silvia, Andrea, and Marco. Their personal information is provided below Raphael Giordano 160 West 57 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 Tiger uses the accrual method of accounting and follows GAAP, EC is not a subsidiary not is it in an affliated group with any other entity. Tiger is not audited by a CPA firm and has never had a restatement of its income statement. Tiger reported the following information for the year . Tiger did not pay dividends in excess of its current and accumulated earmings and profits None of the stock of Tiger is owned by non-U.S. persons. - Tiger has never issued publicly offered debt instruments - Tiger is not required to file a Form UTP .Tiger made several payments in the current year that required the filing of federal Forms 1099 These Forms 1099 were filed timely by Tiger During the year, none of the shareholders of Tiger changed. Tiger hasnever disposed of more than 65% (by value) of its assets in a taxable, non taxable, or . tax-deferred transaction. Tiger did not receive any assets in Section 351 transfers during the year. All of the questions on Schedule B, Form 1120 should be checked "no" for the year. . . Additional information: Tiger has been rapidly expanding its catering business. This expansion has required a significant amount of new equipment purchases. Tiger sold some of its liquid investments in order to avoid having to take on debt to fund these purchases. increasing its advertising budget. expenditures will begin next year. Further, Tiger invested heavily in its catering business by significantly Tiger and its officers expect that revenue increases from these Despite being profitable the past few years, Tiger does not want to carryback net operating loss Ifany) generated in the current year. Tiger believes the next few years will be far more profitable and the losses will be of a greater tax benefit in the future. The dividends received by EC during the year were paid by Apple, Inc. Tiger 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, 2014 for $100,000 (no premium or discount paid). The bond was redeemed by New York City on February 1, 2017 for $100,000. Both tax basis and proceeds received on this transaction were reported to EC on a form 1099-B. Triger purchased 200 shares of Apple, Inc. on October 10, 2014 for $100,000 including commisson). 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, Tiger contributed $8,000 to the American Lung Association. On campaign for next year. This money represented hailr of the 10, Tiger paid Madison Advertising $27,500 to design a new catering advertisement contract price. Tiger expects t total $$5,000 that the services will be provided and delivered to EC on about June 30, 2018. Tiger prepaid an insurance premium of $21,000 n September. The new policy is effective October 1, 2018 through September 30, 2019. regular tax depreciation for the year is correctly calculated as $350,000 before considering the Tigers method/s) possible on these asset additions without electing any 5179 expensing. Social Security Percent of time Percent of stock devoted to Amount of Name owned compensation number 150,000 130,000 130,000 120,000 55% 15% 15% 15% 100% 100% 100% 100% Raphael Giordano356-87-4322 284-58-4583 Andrea Giordano 423-84-2343 Silvia Costa Marco Giordano 487-27-4797 As reported on the balance sheet (see below), on December 31, 2017 the accrued wages were $44,500 and the accrued bonuses were $45,000. The wages and bonuses were payable to Raphael, Silvia, Andrea, and Marco. These accrued wages and bonuses were paid on January 20, of 2017. Also, as reported on the balance sheet, on December 31, 2017, the accrued wages were $51,500. The wages were owed to Raphael, Silvia, Andrea, and Marco. The accrued wages were paid on January 22, 2018. All the other employees' wages and bonuses were paid on December 31, 2018. As of December 31, 2016 and December 31, 2017, respectively, Tiger had accrued vacation payable on its books of $62,500 and $73,000. All the 2016 vacation accrual was paid during the period from April 1 through November 30, 2018. As of March 15, 2018 EC had paid none of its 2018 accrual. All of the vacation accrual amounts for both years were owed to employees other than Raphael, Silvia, Andrea, On November 1, a large insurance company paid Tiger a $100,000 deposit to reserve catering event services on March 18, 2018 at the insurance company's annual meeting in New York City. The money is fully refundable until January 15, 2019. Thereafter, half of the deposit becomes non-refundable. Tiger maintains an inventory of several items, Inventory is valued at cost. Tiger has never changed its subnormal goods. The rules of Section 263A (UNICAP) do not apply to Tiger Tiger did not pay a dividend in the current year Tiger made no estimated tax payments during the current year Financial Statements (kept on a GAAP basis): Tiger Catering, Inc. Balance Sheet ory method. Tiger uses specific identification for its inventory. Tiger has never written down any 12/31/2016 $ 44,000 177,000 (41,000) 62,500 145,000 (32,000) 59,000 100,000 100,000 Accounts Receivable Less: Allowance for Bad Debts ory Publicly traded securities 0 0 125,000 2,955,000 (715,000) 15,750 39,500 Tax-exempt bond U.S. Treasury Bonds Fixed Assets Less: Acc. Depreciation Prepaid Insurance Prepaid Rent Prepaid Advertising 2,115,000 (436,500) 0 38,500 $2,276,500 $2,723,750 Total Assets: Liabilities and Shareholders' Equity Accounts Payable Accrued Bonuses Accrued Vacation Accrued Wages Event Deposits Deferred Tax Liability 102,000 45,000 62,500 44,500 131,000 0 73,000 51,500 100,000 14,000 657,000 1,415,000 45,910 424,000 1,243,000 Note Payable-First Bank of TX (Credit Line) Mote Payable-EG Capital Equipment Leasing Capital Stock Retained Earnings-Unappropriated 1,000 99,000 1,000 99,000 182,250 Additional paid-in Capital Total Liabilities and Shareholders' Equity $2,723,750 $2,276,500 ormation is missing, use reasonable assumptions to fill n the gaps. lgnore any Alternative Minimum Tax (AMT) calculations and do not prepare any AMT related forms. complete Tiger Catering, Inc.'s 2018 tax return based upon the information provided below. If corporation with a calendar year end. EC operates a delicatessen/bakery intouston, TX that specializes in mobile food c Tiger Catering Iinc. () is organired in the state of New York as a corporation and is tased as a "C catering for events and gatherings within the tri-state area. EC's address, employer dentification number (EIN), and date of incorporation are as follows: Tiger Catering, Inc. 257 West 55 Avenue Houston, TX 77004 EIN-13-9823459 Date Incorporated: March 17, 2011 Tigers address has not changed since its inception. Tiger has only common shares issued (no preferred stock). There are currently 10,000 shares of Tiger common stock issued and outstanding. Tiger is owned by four shareholders from the same family: Raphael Giordano (father) and his three children Silvia, Andrea, and Marco. Their personal information is provided below Raphael Giordano 160 West 57 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 Tiger uses the accrual method of accounting and follows GAAP, EC is not a subsidiary not is it in an affliated group with any other entity. Tiger is not audited by a CPA firm and has never had a restatement of its income statement. Tiger reported the following information for the year . Tiger did not pay dividends in excess of its current and accumulated earmings and profits None of the stock of Tiger is owned by non-U.S. persons. - Tiger has never issued publicly offered debt instruments - Tiger is not required to file a Form UTP .Tiger made several payments in the current year that required the filing of federal Forms 1099 These Forms 1099 were filed timely by Tiger During the year, none of the shareholders of Tiger changed. Tiger hasnever disposed of more than 65% (by value) of its assets in a taxable, non taxable, or . tax-deferred transaction. Tiger did not receive any assets in Section 351 transfers during the year. All of the questions on Schedule B, Form 1120 should be checked "no" for the year. . . Additional information: Tiger has been rapidly expanding its catering business. This expansion has required a significant amount of new equipment purchases. Tiger sold some of its liquid investments in order to avoid having to take on debt to fund these purchases. increasing its advertising budget. expenditures will begin next year. Further, Tiger invested heavily in its catering business by significantly Tiger and its officers expect that revenue increases from these Despite being profitable the past few years, Tiger does not want to carryback net operating loss Ifany) generated in the current year. Tiger believes the next few years will be far more profitable and the losses will be of a greater tax benefit in the future. The dividends received by EC during the year were paid by Apple, Inc. Tiger 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, 2014 for $100,000 (no premium or discount paid). The bond was redeemed by New York City on February 1, 2017 for $100,000. Both tax basis and proceeds received on this transaction were reported to EC on a form 1099-B. Triger purchased 200 shares of Apple, Inc. on October 10, 2014 for $100,000 including commisson). 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, Tiger contributed $8,000 to the American Lung Association. On campaign for next year. This money represented hailr of the 10, Tiger paid Madison Advertising $27,500 to design a new catering advertisement contract price. Tiger expects t total $$5,000 that the services will be provided and delivered to EC on about June 30, 2018. Tiger prepaid an insurance premium of $21,000 n September. The new policy is effective October 1, 2018 through September 30, 2019. regular tax depreciation for the year is correctly calculated as $350,000 before considering the Tigers method/s) possible on these asset additions without electing any 5179 expensing. Social Security Percent of time Percent of stock devoted to Amount of Name owned compensation number 150,000 130,000 130,000 120,000 55% 15% 15% 15% 100% 100% 100% 100% Raphael Giordano356-87-4322 284-58-4583 Andrea Giordano 423-84-2343 Silvia Costa Marco Giordano 487-27-4797 As reported on the balance sheet (see below), on December 31, 2017 the accrued wages were $44,500 and the accrued bonuses were $45,000. The wages and bonuses were payable to Raphael, Silvia, Andrea, and Marco. These accrued wages and bonuses were paid on January 20, of 2017. Also, as reported on the balance sheet, on December 31, 2017, the accrued wages were $51,500. The wages were owed to Raphael, Silvia, Andrea, and Marco. The accrued wages were paid on January 22, 2018. All the other employees' wages and bonuses were paid on December 31, 2018. As of December 31, 2016 and December 31, 2017, respectively, Tiger had accrued vacation payable on its books of $62,500 and $73,000. All the 2016 vacation accrual was paid during the period from April 1 through November 30, 2018. As of March 15, 2018 EC had paid none of its 2018 accrual. All of the vacation accrual amounts for both years were owed to employees other than Raphael, Silvia, Andrea, On November 1, a large insurance company paid Tiger a $100,000 deposit to reserve catering event services on March 18, 2018 at the insurance company's annual meeting in New York City. The money is fully refundable until January 15, 2019. Thereafter, half of the deposit becomes non-refundable. Tiger maintains an inventory of several items, Inventory is valued at cost. Tiger has never changed its subnormal goods. The rules of Section 263A (UNICAP) do not apply to Tiger Tiger did not pay a dividend in the current year Tiger made no estimated tax payments during the current year Financial Statements (kept on a GAAP basis): Tiger Catering, Inc. Balance Sheet ory method. Tiger uses specific identification for its inventory. Tiger has never written down any 12/31/2016 $ 44,000 177,000 (41,000) 62,500 145,000 (32,000) 59,000 100,000 100,000 Accounts Receivable Less: Allowance for Bad Debts ory Publicly traded securities 0 0 125,000 2,955,000 (715,000) 15,750 39,500 Tax-exempt bond U.S. Treasury Bonds Fixed Assets Less: Acc. Depreciation Prepaid Insurance Prepaid Rent Prepaid Advertising 2,115,000 (436,500) 0 38,500 $2,276,500 $2,723,750 Total Assets: Liabilities and Shareholders' Equity Accounts Payable Accrued Bonuses Accrued Vacation Accrued Wages Event Deposits Deferred Tax Liability 102,000 45,000 62,500 44,500 131,000 0 73,000 51,500 100,000 14,000 657,000 1,415,000 45,910 424,000 1,243,000 Note Payable-First Bank of TX (Credit Line) Mote Payable-EG Capital Equipment Leasing Capital Stock Retained Earnings-Unappropriated 1,000 99,000 1,000 99,000 182,250 Additional paid-in Capital Total Liabilities and Shareholders' Equity $2,723,750 $2,276,500