How should we account for the new WorldCom/MCIT tracking stock?
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How should we account for the new WorldCom/MCIT tracking stock? Greg asked....
Worldcom has issued a tracking
stock, MCIT to WCOM shareholders. We have received one share of MCIT
for every 25 shares of WCOM. I do not think this was a spinoff. We did not
pay any additional money for them. How do we enter these
new shares?
Actually, according to the WCOM web site found at
you'll see that this transaction should indeed be
treated as though it was a spinoff. 96.11% of your original cost
basis will be allocated to your WorldCom shares and 3.89% of your
original cost basis in WCOM will be allocated to the shares you received,
including any fractional shares deemed received in which you actually received
cash in lieu of the shares.
For assistance in entering investment transactions
in bivio, including spin-offs, please see....
If you need further assistance feel free to write
us at Trez_Talk@bivio.com or the bivio
support staff at support@bivio.com
Thanks for using bivio!
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