Complicated corporate action

[AIM]

Hi,
How to handle this corporate action? KHD splits into 2 companies, one is now TTT, the other KHDHF. The TTT shares are distributed 1 for 1 (1 TTT for each KHD), the KHDHF is distributed .286 for each original KHD share. The timeline is:
3/25/10 bought 200 KHD for 2907 ($14.50 + $7 commision) (redemption showing in cash account)
3/31/10 KHD changed into TTT (1 for 1) (FM shows transfer in but no values.)
4/21/10 shares of KHDHF appear in account. This spin-off occurred on 3/31 but only appears in account later (foreign shares take longer). FM shows a transfer in of the KHDHF with zero values.

Where do I need to enter values for this to reflect properly? Thank you for your help with this.
David.

[Mark]

Hi David,

There are probably several ways you could record this, but I'd suggest:

1) Use the "Spin Off Wizard" on 3/31 for the TTT shares. You'll need to know whether this was a taxable or tax-free event, and also the amount of cost basis that transferred to TTT. This will record some transfers, and distributions to handle everything. You can read the online help from the spin-off wizard dialog for details.

2) Your KHDHF shares should have the cost basis of your original KHD shares minus whatever cost basis you moved into TTT. This will be the case after you use the spin-off wizard for step #1. On 4/21, record a split in KHD at a ratio of .286 for 1. Change the name/symbol of the investment under the Properties dialog.

Also, make sure to delete any transfers that were previously recorded, before doing this.