scorp sale

[TAXMAN]

Hey all what I have is a H&W s corp. The corp is selling its building and all assets inside building, inventory and the goodwill of business. The H&W are holding onto the cash, and the AR.

Wouldn't the sale price be allocated to Inventory, building and assets, and goodwill in that order.

What would I do with the cash and ar since H&W are turning in their stock for the cash and the AR?

Any thoughts.

[OldJack]

If sales agreement does not allocate you list all sold asset at fair market value and determine each assets percentage of total FMV.  Each assets percentage is multipled by the total sales price with remaining sales price classified as Goodwin.  Technically there is an IRS form that both parties of the sale is supposed to attach to their return in the year of sale.