Need help with accounting entries please.RE: A 2 member LLC taxed as an S Corp. Member 1 owns 75%, Member 2 owns 25%.Effective 1-1-17 the LLC is purchasing Member 2's 25% for $45000. The contract states that The LLC is purchasing all of Member 2's equity including retained earnings.On 1-1-2017 the co shows 34000 RE on the balance sheet. $8500 of this RE pertains to member 2. It was included on his K1 for year 2016 as earnings. Member 2 would like to avoid having the 8500 increase his basis in the equity to minimize his tax on the gain .Is this journal voucher OK?Debit RE 8500Debit Members Equity 36500Credit Cash 45000The goal for member 2 is to minimize his cost basis while keeping the LLC's books correct.Please respond with comments.Thanks for your help.

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I don't think this is homework. I think OP charges for business advice and then gets the answers he needs online, free if possible. (He asked more about this scenario today, 2/13)