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    vcb4's Avatar
    vcb4 Posts: 1, Reputation: 1
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    #1

    Apr 14, 2008, 09:51 AM
    Stock Transfer - Privately Held Corporation
    I am trying to figure out how to record the following type of transaction:

    In this particular privately held corporation, the parent is the primary stockholder. When she decided to retire, she and her son made an arrangement for the sale of her corporate stock. Her son agreed that in return for her stock, the corporation will pay her $1,000 per month for the rest of her life and he will become the sole stockholder. How would this be recorded on the books?
    MaggieMouse's Avatar
    MaggieMouse Posts: 226, Reputation: 8
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    #2

    Apr 16, 2008, 01:29 PM
    Is this a finance question or an accounting question? Finance: you may need to calculate the present value of an indefinite annuity. Accounting: Every month, Dr. Capital-Parent, Cr. Cash
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