I purchased an existing business. Where do I record the Purchase cost?

[SweetieJean]

What did you buy? Stock? Assets?

[Anita01]

Instead of reporting the purchase cost, you enter the assets that you  purchased and the cost of them.  If you purchased hard assets, such as equipment, those are depreciated and if you purchased soft assets like goodwill, that's amortized.  When you prepare the Schedule C section, you'll be asked if you have assets to enter and say Yes there.