Actually, the answers continue to trickle in. I finally got a copy of the actual agreement. It is not paid in full in 2022, which creates another question. I figured out that i needed to create the "gain on sale of goodwill" account as other income, but did not separate the client list. I will correct that. Apparently only one third was paid in 2022; one payment is due in each 2023 and 2024. This is an S-corp, she stopped taking pay at the end of 2022, but now i need to keep the s-corp alive until the final payment is made in 2024. I believe i can do that by having her take one draw when the 2nd payment is made and taxing it like regular payroll. I am still researching this. If you think I am wrong about that, your response would be much appreciated. Thank you for your response, I feel much better about my conclusions so far.
