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How does an s corp account for a shareholder buyout?
A major shareholder wanted out of an s corp. None of the other shareholders were in the position to buyout the other shareholder. So company funds were used to buyout the shareholder and then the ownership was divided among the remaining shareholders proportionally to their ownership. I'm assuming it's okay for a corporation to buyback a shareholder's shares but I'm not sure how to enter this on the ledger.
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‎June 5, 2019
10:50 PM