Thanks you so much for your help.!!

IraS1@aol.com wrote:
> Your broker is essentially right regarding the handling of the
> transactions, though I might quibble about a few pennies here and there.
>  
> According to the Prospectus on the merger, you elected a share plus cash
> payment for each of your Caesars Entertainment share. You will recognize capital
> gain (long term) on the lesser amount of the cash received (other than
> cash-in-lieu) or the excess of the value of Harrah stock plus cash received
> (other than cash-in-lieu) over your cost basis in Caesars Entertainment.
> In your case, the latter condition governs.
>  
> Here's how you make the necessary entries.
>  
> 1) Enter the merger of Caesars Entertainment into Harrahs on
> 6/13. Enter the total number of shares (including fractions) received and
> enter the cash-in-lieu amount of $5.92.
>  
> 2) Enter an income transaction for Harrahs where the distribution type
> is "return of capital" and the amount is the difference between the value of all
> of the Harrahs shares received (including fractional shares) and your
> original cost basis in Caesars (1240.95).
>  
> 3) Enter an income transaction for Caesars Entertainment where the
> distribution type is "long term capital gain" and the amount is the difference
> between the cash received (568) and the amount entered as a return of capital in
> step 2.
>  
> After you are finished, you should be able to verify the following:
>  
> 1) You have a long term capital gain on Caesars of approximately 173.
>
>  
> 2) You have a long term capital gain/loss of a few dollars on the sale of a
> fractional share of Harrahs.
>  
> 3) Your current cost basis in Harrahs is the value of the Harrahs stock on
> the date you received the Harrahs stock.
>  
> Ira Smilovitz
>  
> In a message dated 12/14/2005 8:35:15 P.M. Eastern Standard Time,
> wecanpp@bivio.com writes:
> Does
> anyone know how I should record this transaction:
>
> Purchase in 2/04 of
> 100 shares of Caesars Enterrtainment.
> Cost was 1186 plus 54.95 in
> commission. (no problem here)
>
> On June 20, 2005 the following
> happens:
>
> We receive 22 shares of Harrahs (according to my broker
> the
> cost basis is 846.33) in exchange for our Caesars stock.
>
> We also
> receive $568 in cash.  The broker tells me that the
> cost basis of the
> cash received is 394 leaving us with $173
> in capital gains.  In
> addition we received 5.92 in cash in
> lieu of fractional
> shares.
>
>
>