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Posted by jpsga on December 2, 2006, 7:42 pm
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>I have Q2005 Deluxe R6.
>
> The acquistion of North Fork Bancorporation by Capital One Financial
> Corp took place yesterday on December 1, as a tax-free exchange of
> North Fork stock for Capital One stock.
>
> I have a fairly large position in North Fork, with over 40
> transactions, many a reinvestment of dividends. I used the "Corporate
> Acquisition (stock for stock)" function, and under "New shares issued:
> per held share" I entered .3692. In "Price per share for acquiring
> company" I entered $76.238. I now have over 40 new transactions with
> the new name, but a cost that is lower than the 76.238 price that
> Capital One paid for North Fork.
>
> The summary and portfolio pages show the correct number of shares of
> the new stock, but the cost basis is still the cost basis for North
> Fork, not Capital One.
>
> Is there a way to fix this so I have the correct figure for the cost
> basis? Or should I just delete all the new transactions from the
> Corporate Acqusition, and use the Remove shares function to get rid of
> North Fork and Shares added to put in Capital One.
>
> Thank you.
>
> Caryl
>
The Tax Free Exchange applies only to the acquision transaction.
430 No such article
>I have Q2005 Deluxe R6.
>
> The acquistion of North Fork Bancorporation by Capital One Financial
> Corp took place yesterday on December 1, as a tax-free exchange of
> North Fork stock for Capital One stock.
>
> I have a fairly large position in North Fork, with over 40
> transactions, many a reinvestment of dividends. I used the "Corporate
> Acquisition (stock for stock)" function, and under "New shares issued:
> per held share" I entered .3692. In "Price per share for acquiring
> company" I entered $76.238. I now have over 40 new transactions with
> the new name, but a cost that is lower than the 76.238 price that
> Capital One paid for North Fork.
>
> The summary and portfolio pages show the correct number of shares of
> the new stock, but the cost basis is still the cost basis for North
> Fork, not Capital One.
>
> Is there a way to fix this so I have the correct figure for the cost
> basis? Or should I just delete all the new transactions from the
> Corporate Acqusition, and use the Remove shares function to get rid of
> North Fork and Shares added to put in Capital One.
>
> Thank you.
>
> Caryl
>
The Tax Free Exchange applies only to the acquision transaction.
Since you had urealized gains from North Fork they have to be accounted for.
Those unrealized are accounted for in the new cost basis.
JPS
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