Seller financed business- chooses to reduce selling price after 10 yrs

[mircpa]

Hello friends

I have aquestion my client bought a gas station business along with real estate 10 years back for 2.8 million. This property and business was originally financed by seller. After 10 years, seller chooses to reduce selling price by 100K and wrote off 100K from outstanding loan held by them at 12/31/2013 and accepted 100K less amount then what was owed to them (client refinanced loan from different bank) and did payoff. From 2004 until 2013 assets worth 2.8 million are shown in balance sheet and depreciated. Client was suggested by seller's accountant that they would reduce selling price in their books and accordingly we should reduce our buying price. My question is should I knock of 100K form book value of asset & outstanding loan now or is there any other treatment. Thanks to all who responds.

[ILLMAS]

You can debit the loan payable by $100K and credit either the property or goodwill for the $100K.