How should I handle a stock acquired by spinoff?

[Phil Longstaff]

I'm not familiar with the companies involved, but try this:

If you have 94 (say) shares of Verizon, and they split off FTR, you still have 
94 shares of Verizon, but now have 94 new shares.  I assume the value of the 
Verizon shares will decrease by the same amount as the new FTR cost basis.  Just 
add a "sale" of 0 shares but with $94 (using $1/share for FTR) from Verizon and 
use that value to "purchase" the FTR shares.  You would probably need to add 
from the FTR account.

 Phil
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I used to be a hypochondriac AND a kleptomaniac. So I took something for it.




________________________________
From: John K. Taber <jktaber at charter.net>
To: gnucash-user at gnucash.org
Sent: Wed, July 7, 2010 9:14:01 AM
Subject: How should I handle a stock acquired by spinoff?

Verizon sold its wired communications to Frontier Communcations (FTR). As a
result, suddenly as of 7/2 I own 94 shares of FTP.

How do I enter this transaction in my GnuCash investment register(s)? I want
to show cost basis I think, but this is not purchased stock, nor a gift. How
on earth do I account for it? 

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