S-corporation client selling business for $300,000. Almost all goodwill. I am trying to compare Asset sale vs Stock Sale.

When going Asset sale route:

• Where is goodwill sale reported on s-corporation?
• I am playing with a mock up 1120S and 8594 does not flow anywhere. It just looks it is what is agreed between buyer and seller so the are reporting same.
• I put sale on 4797 and income flows to line 1 and he gets QBI. I do not think this is correct.
• Another try and I put on page 3, schedule K, line 10 (other Income) and then on 1040 put sale as net Long-term gain not portfolio income. This seems more correct, but still not sure.
• Anyone articles anyone is aware of?
• Any suggestions?