Handling ATT's spinoff of AWE
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Handling ATT's spinoff of AWE Tommy wrote.....
Could you help me out
on inputting the T spinoff of AWE? I do no know the remaining basis percentage
for either of the stocks.
ATT (T) shareholders of record on June 22,2001 will
receive .3218 shares of AWE for each share of T that they owned as of that
date. The actual spinoff distribution took place on July 9,
2001.
According to ATT's investor relations web site at
http://www.att.com/ir/ae/splitoff/tax.html
"your pre-AT&T Wireless split-off AT&T common stock tax basis should be
allocated as 77.66% to your AT&T stock and as 22.34% to your AT&T
Wireless Services, Inc. stock, including any fractional share you were entitled
to receive". They also make a worksheet available to help you with this
calculation. Therefore, for those entering this transaction into bivio,
you will need to enter 77.66% as your remaining basis fraction.
It is important to note, however, that the .3218 to
1 ratio might have resulted in some fractional shares that you will receive as
cash in lieu of fractional shares. You will need to determine the
amount of this cash in lieu of fractional share amount from your broker, etc.
before you will be able to enter the transaction accurately into your accounting
software.
Thanks for using bivio,
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