S-Corp Dissolution

Forum|Forum|3 years ago
March 1, 2023
2 replies
33 views

Client sold a grocery business operated under S-Corp. on 11/30/22 for $10,000.

Their balance sheet on the last day: cash 54,414, inventory 19,414, loans from shareholders 13,737, capital stock 40,006, retained earnings 19,736.

Please help me how to process transactions in ProSeries professional to dissolve the S-corp and realize loss of sale.

Thanks

ProSeries Professional

This topic has been closed for replies.

dascpa

Level 11

Look at the contract of sale for the allocation of price breakdown. File Form 8594. Take some continuing ed classes on the subject. If you understand the concepts, that makes the tax return input so much easier.

dkh

Level 15

Let's start with the $10,000. What is the breakdown - inventory, ~~assets~~ equipment (which you did not mention being on the Balance Sheet ), Goodwill ?

edited

IRonMaN

Level 15

Pesonally I've been looking for a sweetheart deal like that. Buy 54,414 of cash for only $10,000 and have them throw some inventory in for good measure. Heck of a deal. Now if the inventory was all Dove chocolate this would be a grand slam 😀

Slava Ukraini!

sjrcpa

Level 15

I want to zero the inventory balance, but it will affect my cost of goods sold. How do I make it sale of inventory instead for the calculation of loss on sale of business ?

Thanks

You said they sold the inventory. Therefore, Cost of Goods Sold is appropriate.

The more I know the more I don’t know.

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