if there was no plan of liquidation as described by @Rick19744 so that he S-Corp remains alive. in the simplest scenario (balance sheet) using tax basis accounting there would be the receivable, deferred gain (a liability) and offsetting amount in a shareholder equity account or accounts. if using proper accounting then only the receivable and equity. the gain recognized each year would be shown in the M-1 line 2.
oh and the S-corp return is due 9/15 not 10/15
the original due date of the S-corp return was 3/15/2023 the 7004, if filed, gives you a 6 month extension.
