Tax Return $-$ Problem $1$: C corporation

Instructions

a$)$ Calculate Express Catering, Inc.$\text{'}$s $2023$ federal income tax liabilities manually using the book$-$

tax reconciliation spreadsheet provided on Canvas.

b$)$ Prepare Express Catering, Inc.$\text{'}$s $2023$ federal income tax return using tax software such as

ProConnect Tax. If any required information is missing, use reasonable assumptions to fill in

the gaps.

c$)$ No specific feedback will be provided before the first$-$round submission deadline.

d$)$ Detailed feedback will be provided after the first$-$round deadline. Your grade for tax return

project one will be weighted as follows: $40\%$ for the first$-$round submission and $60\%$ for the

second$-$round submission.

For example, if you scored $10$ out of $15$ points on the first$-$round submission and then revised

the project based on feedback, scoring $14$ out of $15$ points on the second$-$round submission,

your final grade would be calculated as follows: $100\mathrm{.}4+140\mathrm{.}6=12\mathrm{.}4.$

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$).$