Re: Spin off of MO shares

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Posted by Mark on April 06, 2007 at 11:56:53:

In Reply to: Spin off of MO shares posted by Andy Christensen on April 05, 2007 at 22:51:37:

: MO recently had a spin off of KFT shares. We know the ratio of the spin off (0.692024) but I was hoping that Fund Manager would calculate my:

: 1. Basis for my new KFT shares
: 2. Adjusted basis for my old MO shares.

: Does it?

: The spin off dialog in the "Edit" drop down menu asks for the basis of my new KFT shares. If I can come up with a number, will it adjust the basis of my old MO shares?

: Andy

Hi Andy,

Yes, you'll want to use that "Spin-off" command. That dialog will show you your current basis in the parent. Using this, and the ratio, you can calculate the cost basis of the new child. When you use this dialog a new child investment will be created with this cost basis, and a "Return of Capital" distribution will also be recorded in the parent, which lowers the cost basis of the parent.

Thanks,
Mark
--
Fund Manager - Portfolio Management Software

Replies:

• Re: Spin off of MO shares Andy 00:27:39 04/07/07 (0)