S-corp 1120s related to purchase of a business

[herry0223]

I have a S-crop set up in 2010. I purchase a gas station in 2020 with a new DBA under my previous S-corp. The purchase price was $300K (cash) of which $100K of this amount was for inventory. I lease a gas station so not land or building involved.

My first question is where can I report for the rest of $200K ($300K-$100K) on 1120S form?

Second, am I required to file 8594 Asset Acquisition Statement?

Third,  for 2020, it has net loss of $30K.  Also, I have net loss of $20K during 2021.  I am planning to sell the gas station in May 2021.  In 2020 balance sheet how to put $300K under Stockholder's equity section for the best tax benefit for 2020 and 2021? I am not sure whether I put $300K either "Loan from Shareholder", or "Capital contribution", or breakout between two?

[M-MTax]

Not much to go on re the assets you bought but you've got to file form 8594 if you goodwill or going concern value could attach. If you paid $100k for the inventory and no other hard assets then the extra $200k must have been for goodwill or going concern value. Most of this will be entered on your balance sheet with any goodwill being amortized. It seems like you have $300k of additional paid-in capital unless somehow you have an agreement where the corp is going to pay you back for the advance of the $300k to buy the business.

[herry0223]

Thanks. After I sell the gas station in May 2021, how does paid-in capital show on the 2021 balance sheet? Will it be zero out? Due to this sale, how does my balance sheet look like for 2021 Tax return? Total Asset and liability will be $0, what about paid in capital and retained earning part?

[M-MTax]

That's right but you need to take your distribution into account which should zero out the rest (PIC).