Corporate Acquisition


C

Caryl

I have Q2005 Deluxe R6.

The acquistion of North Fork Bancorporation by Capital One Financial
Corp took place yesterday on December 1, as a tax-free exchange of
North Fork stock for Capital One stock.

I have a fairly large position in North Fork, with over 40
transactions, many a reinvestment of dividends. I used the "Corporate
Acquisition (stock for stock)" function, and under "New shares issued:
per held share" I entered .3692. In "Price per share for acquiring
company" I entered $76.238. I now have over 40 new transactions with
the new name, but a cost that is lower than the 76.238 price that
Capital One paid for North Fork.

The summary and portfolio pages show the correct number of shares of
the new stock, but the cost basis is still the cost basis for North
Fork, not Capital One.

Is there a way to fix this so I have the correct figure for the cost
basis? Or should I just delete all the new transactions from the
Corporate Acqusition, and use the Remove shares function to get rid of
North Fork and Shares added to put in Capital One.

Thank you.

Caryl
 
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J

jpsga

Caryl said:
I have Q2005 Deluxe R6.

The acquistion of North Fork Bancorporation by Capital One Financial
Corp took place yesterday on December 1, as a tax-free exchange of
North Fork stock for Capital One stock.

I have a fairly large position in North Fork, with over 40
transactions, many a reinvestment of dividends. I used the "Corporate
Acquisition (stock for stock)" function, and under "New shares issued:
per held share" I entered .3692. In "Price per share for acquiring
company" I entered $76.238. I now have over 40 new transactions with
the new name, but a cost that is lower than the 76.238 price that
Capital One paid for North Fork.

The summary and portfolio pages show the correct number of shares of
the new stock, but the cost basis is still the cost basis for North
Fork, not Capital One.

Is there a way to fix this so I have the correct figure for the cost
basis? Or should I just delete all the new transactions from the
Corporate Acqusition, and use the Remove shares function to get rid of
North Fork and Shares added to put in Capital One.

Thank you.

Caryl
The Tax Free Exchange applies only to the acquision transaction.

Since you had urealized gains from North Fork they have to be accounted for.
Those unrealized are accounted for in the new cost basis.
JPS
 
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C

Caryl

Thank you for your explanation.

Caryl
The Tax Free Exchange applies only to the acquision transaction.

Since you had urealized gains from North Fork they have to be accounted for.
Those unrealized are accounted for in the new cost basis.
JPS
 

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