Twin
Level 1

I have a client who sold his S Corporation.  The buyer was a C Corporation and did not change any of the S Corporations identity numbers (EIN and state ID).  When the sale occurred, the only liabilities that existed was payroll, and my client retained those and paid them when due.  The S Corp was on an accrual basis and the payroll was paid after the sale occurred. How does the S Corp record this expense?

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