AUD's spinoff of BR

MARIE L. MURRELL on

How do we calculate the cost basis of Broadridge Financial.
It was a spin-off of Automatic Data Processing. I would
think even AUD needs to have a basis adjustment.

Thank You
Marie

Rip West on

Hi Marie,

The necessary info will be up on the IClub Website shortly, but in the meantime, I am showing the data below. It was written for Club Accounting, but you should be able to adopt it to bivio with no problem.

Let me know if you have any questions.

Rip West
Saint Paul, MN

SPINOFF: Automatic Data Processing {ADP] and Broadridge Financial Solutions, Inc. [BR] Bug:

Issue:
On 3/30/2007 Automatic Data Processing, Inc. [ADP] distributed 0.25 shares of Broadridge Financial Solutions, Inc. [BR] for each share of ADP owned in a regular spinoff.

Cause:
This is a normal spinoff, as discussed on the company website at http://www.investquest.com/iq/a/adp/main/TaxBasisLtr-spreadsheet.mailing.pdf

Resolution:
Enter the spinoff transaction in accordance with the instructions at
http://www.iclub.com/support/kb/default.asp?page=normal_spinoff

Here's the information you need for the spinoff:
1. Spinoff date - 3/30/2007
2. Parent company - Automatic Data Processing, Inc. [ADP]
3. Remaining basis percentage of Parent Company, [ADP] - 90.33.
4. Number of shares held in parent company - provided by software.
5. There is one daughter company - Broadridge Financial Solutions, Inc. [BR]
6. Number of shares of BR received - This will be the number of shares owned in ADP multiplied by 0.25 (make sure to include fractional shares).
7. Price per share of daughter company - $19.58.
8. Cash received in lieu of fractional shares - take from broker statement.

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