Thank you for the replies. Hopefully my last question regarding this: The S corp will file short year from 1/1 until sales date. S corp stockholder will show the stock sale on personal return. The C corp will also be filing a short year from purchase of stock until 12/31. As the purchase of stock is not part of the corporate books, can the c corp issue return of capital distributions or are all distributions considered dividends as the new stockholder did not actually contribute cash to the corp?

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?      

ABC Corp, an S corp with one "owner" has a stock value of $50,000 on  7/1/2020. "owner" sells stock for $150,000 on 7/2/2020 receiving $50,000 via check from new owner and will be paid the remaining $100,000 via a 3 year note. I think I'd credit note payable for $100,000 and paid-in capital from new owner for $50,000, but would I debit capital stock $150,000?