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Re: Merger with additional cash pymt

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Posted by Mark on August 06, 2000 at 19:14:48:

In Reply to: Merger with additional cash pymt posted by GB on August 06, 2000 at 16:10:39:

: Two companies merged. I owned one of them.

: 1. I recorded the split for additional shares.
: 2. I changed the name to the acquiring company.
: 3. I recorded the fractional share as a sell.

: How to I record the addiitonal cash per share that was received? It is less than the cost basis.

You can record this as a distributed distribution. If it is considered
taxable, record it as a dividend, if it is a return of your capital,
record it as a return of capital distribution.

Mark Beiley

Fund Manager for Windows 3.1x/95/98/NT

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