Spin-off Question

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Posted by David on June 13, 2007 at 07:29:31:

I am running FM 7.7, and I've never used the spin-off function before.

Today I got a spin-off of 8 shares of CDL, spun off from DIS. Everything seems pretty clear except the number I'm supposed to enter as the cost basis. How do figure this? FM tells me (correctly) that the CDL was spun off from 113 shares of DIS, which had a cost basis of something like $3999 before the spin-off.

What I actually did was what I used to do on FM5, which didn't have a spin-off function. I used the previous day's closing price, in this case, $8.27/share, and multiplied it by the 8 shares to get the cost basis. Does this make sense?

Thanks.
David.

Replies:

• Re: Spin-off Question Mark 11:06:00 06/13/07 (1)
  • Re: Spin-off Question jeyadev 17:58:23 07/13/07 (0)