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jmac1
Joined: 01 Nov 2006
Posts: 16
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| Posted: Fri Nov 24, 2006 12:58 pm Post subject: Purchasing a C-Corp |
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| I was wondering if anyone knew what the entry is on a C-Corp's books when an employee purchases all the stock. To make the example simple and hopefully not too overly simple, assume a C-Corp has 1.5 million in equity on the books. The C-Corp sells the stock to a person for $2 million. The buyer finances it through an outside party. What entry would be recorded on the C-Corps books? Would the interest and loan payable be on the books or would it be a personal loan? I'd appreciate if anyone can assist in this 'basic' example. |
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Richard Noot
Joined: 20 Aug 2005
Posts: 912
Location: Minnesota
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| Posted: Mon Nov 27, 2006 8:22 am Post subject: Re: Purchasing a C-Corp |
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jmac1 wrote: I was wondering if anyone knew what the entry is on a C-Corp's books when an employee purchases all the stock. To make the example simple and hopefully not too overly simple, assume a C-Corp has 1.5 million in equity on the books. The C-Corp sells the stock to a person for $2 million. The buyer finances it through an outside party. What entry would be recorded on the C-Corps books? Would the interest and loan payable be on the books or would it be a personal loan? I'd appreciate if anyone can assist in this 'basic' example.
It depends. You do NOT give enough info. |
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MCDeWing
Joined: 20 Mar 2006
Posts: 58
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| Posted: Tue Nov 28, 2006 11:26 pm Post subject: |
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jmac1~
Quote: The buyer finances it through an outside party.
If the employee financed it through an outside party, then it wouldn't be on the C-Corps books as anything but a sale of common/preferred stock. |
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