hgtc
Level 5

S-corp bought out departing shareholder and retired treasury stocks.  This reduces total shareholders' equity.  Will each remaining shareholder's stock basis also reduced?

Or, there is no change to remaining shareholders' stock basis.  Hence, total remaining shareholders stock basis (costs) are higher than total shareholders' equity?

Thanks.

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IRonMaN
Level 15

It just affects the departing shareholder.  It shouldn't affect the basis of the remaining shareholders.


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hgtc
Level 5

Thanks.

IRonMaN
Level 15

You betcha!


Slava Ukraini!