Level 2

Preparing 1120S data

Working on corporation tax return

Person A sells all of the 100 shares of ABC Corp to Person B for $150,000

Person B pays Person A $50,000

The remaining $100,000 is owed to Person A by a 3-year note secured by stock certificate and a security agreement with debtors, Person B and  ABC Corp

I guess my questions are: would I list the note on the corporation balance sheet or is it just Person B's debt and how would I handle note payments from ABC Corp on behalf of Person B?




0 Cheers