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?