How do I enter the acquisition of a new stock (SFL) that was
acquired as a tax exempt dividend from another company
(FRO)?

Our holding (100 shr) in the parent company (FRO) was not
decreased by this action.  But we did end up with 10 shr of
SFL.

Does this decrease our cost basis in the parent company?
Since the broker listed the cost of the spinoff as $0.00,
what do we use for the cost basis of the spinoff company?

Thanks in advance, your help will be appreciated.

You'll have to get specific data from the companies involved, but usually you allocate a percentage of your original cost basis to the shares in the new company and retain part of the original cost basis in the original company. You enter the information using the spinoff transaction in bivio.

 

Ira Smilovitz