|
|
Re: Partial buyout question[ Q2 03 - Q4 05 Archive ] [ Current Message Board ] [ Archives ] [ Search ] Posted by James Howard on March 19, 2005 at 12:33:45:In Reply to: Re: Partial buyout question posted by Mark on March 19, 2005 at 12:03:28: : : I have searched the forum for a similar example but can not find one and therefore seeking advice as how to handle the following. : : I currently own Banknorth (BNK), a regional bank. On March 1, Toronto-Dominion Bank (TD) purchased a 51% interest in BNK. The deal of the merger is that for every BNK share one will receive the following: $12.54 in cash, 0.2351 shares of TD with fractional shares paid at $40.522 per share, and 0.49 shares of BNK with fractional shares paid at $31.198 per share. : : I would appreciate any help one can give me regarding how to handle this in FM. : : Thanks. : : There's a lot of activity happening there. Just record it as it is happening. Here's a suggestion: : 1) Record a distribution in BNK of $12.54/share : You could probably record it with some other variations, but the above is best I believe because it maintains your cost basis history in BNK. : As an aside: "Return of Capital" distributions (and "Account Fee" too) are unique distribution types, as they affect your cost basis. When you have a return of capital, this reduces your cost basis for capital gain calculations. Account Fee type of distributions are negative, and they will increase your cost basis. : Thanks, Mark, jfh
|
FundManagerSoftware.com | Search | Site Map | About Us | Privacy Policy |
Copyright ©1993-2025 Beiley Software, Inc. All rights reserved. |