We recently dissolved a partnership and contributed those assets in an S Corporation. Are the balance sheet items such as accounts payable and accounts receivable reported on the S Corporation balance sheet at the same values as in the partnership?

ANSWER

The BIDaWIZ Team's Answer:

To clarify, did you convert the LLC Partnership into an S Corporation? If so, the partnership contributes all its assets and liabilities to the S Corp in exchange for stock and immediately the partnership liquidates by distributing the stock to its partners. This is referenced in Treas. Reg. Section 301.7701-3. & IRC Section 357(c). The accounts receivable & accounts payable should have just move over to the S Corporation balance sheet.