Captial Asset Liquidation


S

ssylee

I'm not sure if this is an appropriate newsgroup to ask this question.
I'm asking the following question to you as a starting point:

I'm involved in making a decision of whether or not to acquire a
capital asset for an entity. The money sitting in the bank account of
the entity belongs to all the members of the entity. That capital
asset was proposed to be acquired for the benefits of the members.
However, since that asset amounts to a large sum of money up front and
depreciates as it is an electronic equipment, there are confusion on
what would need to be done on that capital asset when the entity is
gone. Would the liquidation process involve selling the capital
asset ,and then sending the total sum of money to whoever should get
the money in the order as specified by law?
 
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A

Adrian

ssylee said:
I'm not sure if this is an appropriate newsgroup to ask this question.
I'm asking the following question to you as a starting point:

I'm involved in making a decision of whether or not to acquire a
capital asset for an entity. The money sitting in the bank account of
the entity belongs to all the members of the entity. That capital
asset was proposed to be acquired for the benefits of the members.
However, since that asset amounts to a large sum of money up front and
depreciates as it is an electronic equipment, there are confusion on
what would need to be done on that capital asset when the entity is
gone. Would the liquidation process involve selling the capital
asset ,and then sending the total sum of money to whoever should get
the money in the order as specified by law?
**************************************************
The formulation of your question I find confusing.
A. There seems to be a bit of electronic equipment belingings to X
B. X has money in the bank
C. X has some kind of shareholders
D. You are thinking of aqcuiring X
E. Over time the equipment will depreciate
F. The depreciated asset might have residual value; there might be residual
(financial) assets in X

Is your question whether those financial assets will be yours to pocket
after the equipment is totally depreciated, or whether it belongs to the
"shareholders"? Then my answer would be that would depend opon the terms of
the contracts between the "shareholders" and X. Those contracts do not die
with the death of the equipment, however, what is X? Does it have a statute,
what does it say about the rights of the "shareholders"?

Adrian.
 

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