This is probably a silly question but a client has an LLC. Him and his partner filed a final return for this entity since the minority partner was leaving. The remaining partner opens a new LLC with a new name and resumes business under this new LLC. He is now 100% shareholder and the assets for this business is the same as it was in the old entity. The remaining partner kept the land, building, FFE, etc.
How would I record the assets in the new LLC?
Do I add the assets at the net book value from when they terminated the original LLC and restart depreciation all over again?
Can I add the original purchase price and accumulated depreciation and use the remaining life of the asset as shown in the original fixed asset report?
Do after debiting the assets, do I credit capital contributions so the balance sheet balances?
Is the process different if this was an S Corp?
What is the best practice for my client?
Thanks for your help.