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> For example, selling off your assets doesn’t make you profit if it's on the balance sheet and you sell it for more than it cost you, then you have to book it
by inconceivable 3y ago
> For example, selling off your assets doesn’t make you profit
if it's on the balance sheet and you sell it for more than it cost you, then you have to book it as non-operating income, i.e. capital gains, i.e. profit.
- twobitshifter 3y agoOk, so you make X percent profit but the proceeds are more, and you distribute the proceeds to shareholders. You can also sell at a loss and still make distributions to shareholders. This is Private Equity 101.