C corp liquidating distribution
I would say it would go into a shareholder distribution account.
And there are those that say you just debit RE and call it a day. The land was distributed to her in liquidation with a FMV.(my original numbers were just an example..actual numbers were higher). My initial interest was in the final journal entry.My thought was regardless of what you call the final debit, "loss on liqudation" "Treasury Stock" or just non dividend distribution, you just debit out the remaining RE. Corp recogniized gain on distribution of land in liqudation to shareholder at FMV, shareholder recognizes dividend on accumulated past distributions and accrued interest and shareholder takes loss on exchange of stock for land. There was enough disagreement between the CPA's involved (get 3 or more tired CPA's in a room and you get an argument over journal entries).So, in other words, this is the account where all the prior year dividends were posted so they wouldn't be taxable(? Just something to keep in mind if you hadn't considered it already.Seems like the final debit would be a dividend/liquidating distribution.