will Treasury stocks reduce remaining S-corp shareholders' stock basis

[hgtc]

S-corp bought out departing shareholder and retired treasury stocks.  This reduces total shareholders' equity.  Will each remaining shareholder's stock basis also reduced?

Or, there is no change to remaining shareholders' stock basis.  Hence, total remaining shareholders stock basis (costs) are higher than total shareholders' equity?

Thanks.

[IRonMaN · Accepted solution]

It just affects the departing shareholder.  It shouldn't affect the basis of the remaining shareholders.

[hgtc]

Thanks.

[IRonMaN]

You betcha!