record merger (cash and stock)


J

JR

How would I record a merger where the concideration is going to be about an
80/20 stock/cash transaction? The cash piece is fairly easy in that it is a
sell and will be subject to capital gains tax. The stock conversion however
is not, so the cost basis of this stock is still going to be what it was for
the aquired company.
 
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C

Cal Learner-- MVP

How would I record a merger where the concideration is going to be about an
80/20 stock/cash transaction? The cash piece is fairly easy in that it is a
sell and will be subject to capital gains tax. The stock conversion however
is not, so the cost basis of this stock is still going to be what it was for
the aquired company.
Depending on what software you are running, you might enter it as a
merger.

Portfolio->RecordASpecialActivity->RecordAMerger

In any version, you could change the symbol, rename the stock, add
an appropriate comment, and do an appropriate split to achieve the
ratio you want. Post the ratio you are trying to achieve if you
want a suitable ratio of integers to enter for the split. This split
should leave you with 125% of the shares you will end up with. Then
sell those extra shares.
 
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