LMT & LDOS Exchange offer

[AIM]

Hi Mark,
Recently LMT sold a business to LDOS which resulted in an exchange offer of shares of LMT for shares of LDOS. Each share of LMT was exchanged for 8.2136 shares of LDOS while fractional shares were paid in cash.
To illustrate, 99 shares of LMT exchanged for 813 shares of LDOS plus $5.93 of cash.
What's the best way to record this transaction?

Thanks.

[Mark]

Hi AIM,

So, you had no LMT shares after this transaction? If so, I would record this as a split, plus a sell. Then, also change the name/symbol. The split would be 1 for 8.2136. The sell is for however many partial shares you had after the split. Change the name/symbol under "Investment Properties...".

The other way you can record it is to use the "Transfer Between" wizard. This will leave you with 2 investments. I prefer the first method, as your performance is not split between 2 separate investments on this date.