Hello,

I have a small S-Corp that has not conducted any business for a few years. No income or losses.

The sole shareholder owner is ready to dissolve the corp. His balance sheet is empty except for $40 in a savings account, $62,000 in accounts payable to himself (Would this would convert to bad debt?), $1,000 in Common Stock and Retained Earnings of $63,000.

I presume all of this balances out, but where does it go on the final 1120S?

Please see the attached Balance Sheet.

Thanks

Attached Images

Final Balance Sheet.jpg (21.3 KB, 1 views)