Please complete Express Catering, Inc.$$s $2023$ 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.

Facts:

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 $55$th Avenue

New York City, NY $10027$

EIN: $13-9823459$

Date of Incorporation: March $17,2015$

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$).$

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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 $57$th Avenue

New York City, NY $10027$

SSN: $356-87-4322$

Shares owned $5,500$

$100\%$ of time devoted to the business, compensation of $$150,000$

Silvia Giordano Costa

$250$ South Main

Hoboken, New Jersey $07030$

SSN: $284-58-4583$

Shares owned $1,500$

$100\%$ of time devoted to the business, compensation of $$130,000$

Andrea Giordano

$65$ East $55$th Avenue

New York City, NY $10027$

SSN: $423-84-2343$

Shares owned $1,500$

$100\%$ of time devoted to the business, compensation of $$130,000$

Marco Giordano

$160$ West $57$th Avenue

New York City, NY $10027$

SSN$-487-27-4797$

Shares owned $1,500$

$100\%$ of time devoted to the business, compensation of $$120,000$

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$).$

$$ EC had its sole municipal bond $($New York City$)$ redeemed $($bought back$)$ in the current year. EC originally purchased the New York City bonds on February $1,2017$ for $$100,000($no premium or discount paid$).$ The bond was redeemed by New York City on February $1,2023$ for $$100,000.$ Both tax basis and proceeds received on this transaction were reported to EC on a Form $1099-$B$.$

$$ EC purchased $200$ shares of Apple, Inc. on October $10,2017$ for $$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 $30,2023.$

$$ EC prepaid an insurance premium of $$21,000$ in September. The new policy is effective October $1,2023$ through September $30,2024.$

$$ EC$$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 $2023$:

Description Date Purchased Amount

$5-$year MACRS Property October $2,2023$ $$480,000$

$7-$year MACRS Property September $10,2023$ $$320,000$

Delivery Truck $($over $6,000$ lbs$)$: $5-$year MACRS Property October $12,2023$ $$40,000$

$$

Supplementary Details $($continued$)$:

$$ 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 $2023.$

$$ EC values its inventory at cost and has always us