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What is the journal entry to post the S Corp buyout of

what is the journal entry to post the S Corp buyout of shareholdersJA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: we have 4 children 3 own 100 shares of our S Corp and one owns 200 shares. my husband and I (we) are buying out 100 shares of our son's that has 200 shares and the others just want to take their losses and get out. We want to get investors in our company so we need to put the 300 shares back into the S corp for possible investors to buyJA: Is there anything else important you think the Accountant should know?Customer: we are buying our son's shares on a personal note

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

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I have question about how to book a journal entry. A

I have question about how to book a journal entry. A shareholder of my company company acquired 250 shares of stock in exchange for a promissory note for $40,625. The note was signed 12/31/16. Assuming par value of $1, should the journal entry be recorded as: Dr. Note Receivable $40,625 Cr. Common Stock $250 Cr. APIC $40,375

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

11,012 satisfied customers
I have a question about 5472 forms, Do I need to file 5472

I have a question about 5472 formsJA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: Do I need to file 5472 forms if the total transaction amounts are below $2000?JA: Is there anything else important you think the Accountant should know?Customer: Delaware company with 2 foreign owners with >%25 each.

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taxmanrog

Master's Degree

1,148 satisfied customers
I own several preferred stocks issued by banks. They have

I own several preferred stocks issued by banks. They have dividends around 5%, and the price is very stable...around $25. They are callable at $25 several years from now. I was wondering why a financially sound company would issue preferred stock that obviously is more expensive for them than other available sources? They could issue regular stock at a much reduce yield, for example. Or just borrow money at a lower rate. Should I avoid these investments?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

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How to add goodwill to exisiting c corp, Selling a business

How to add goodwill to exisiting c corpJA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: Selling a business goodwill but have no cost basis on books from prior accountantJA: Is there anything else important you think the Accountant should know?Customer: journal entry

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Mark Taylor

Certified Public Accountant

Masters

3,376 satisfied customers
I have a C Corporation in Texas where I own 51% of stocks.

I have a C Corporation in Texas where I own 51% of stocks. The other 49% are owned by non-resident aliens.I understand that if they have Zero Dividend stocks, they will not have the right to receive any payment if the corporation decides to pay dividends to all stock holders with the common stock.If this is correct, I who owns the other 51% of non Zero Dividend, will be the only that will be receiving any Dividend paymentsIf this is correct, what is the process to convert their common stock they have today to a Zero Dividend stock, and where can I find the forms that will have to be filled during a stockholders meeting where this change of stock type is approved.

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PDtax

Owner

Master's Degree

7,908 satisfied customers
I know that installment sale treatment is severely limited

I know that installment sale treatment is severely limited in cases where the parties are related, though what I have read seems mainly to center on depreciable property. What about the sale of the ownership of a corporation by a father to a son? Can the father accept a promissory note payable over a period of years and treat the sale as an installment sale?

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Lev

Retired

Bachelor's Degree Equivalent

25,386 satisfied customers
The Private Company that I work its PREFERRED stock

The Private Company that I work for sells its PREFERRED stock to investors at $70. They give me an 100 options of common stock for $20, and they say that they have given me the equivalent of $5000 : ( $70-$20)x100I want to know if this is correct because preferred and comon stock cannot be valued the same...?

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Lev

Retired

Bachelor's Degree Equivalent

25,386 satisfied customers
This is a finance questions. How does a PRIVATE company sets

This is a finance questions. How does a PRIVATE company sets a value for its preferred stock when it wants to sell it to investors so that this type of stock represents an equity in the company and at the same time pays a dividend at a certain rate.

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

21,546 satisfied customers
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