Thread: Changes at NHRA

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Originally Posted by 1badmofo

My question is still who gets the $$$$$$$$$$ ?
NHRA was sold for 121 mill with 10 mill in bills by my math that is a 111 mill profit for somebody with a non-profit corp.

The answer to the first is.........shareholders of the corp, you know, those folks who knowingly ponied up risk capital in the beginning or along the way with no guarantee of a gain.

The second is a misunderstanding of what profit is. This was an asset sale, those assets had an initial cost, plus possible improvements over time (such as the four tracks). If there is any money over and above the costs (less any depreciation) that would be a capital gain to the share holders (if there's a distribution) and would be taxed accordingly. If there's a loss, the shareholders eat that too.