recording new stocks issued for free

[Alice Lee]

Is your relationship with the incorporators a strictly business
relationship?  If there is a personal relationship, the stock would be a
gift.  You would record the market value of the stock as your asset and you
would increase your equity account.  You would have no income in this
scenario.  If it is a business relationship only, examine the reason for the
free stock.  Maybe it has no real value--then there is no place for it on
your balance sheet.  Maybe the existing stock in their other company has
lost value and this is their way of keeping you as a happy stockholder.  If
the stock has an ascertainable market value and the relationship is not
personal, you have income and they should be issuing you a yearend tax
document and reporting it to IRS.  The letter from the company should give
you a clue, if you do not already know, the reason for giving stock to you.

  
-----Original Message-----
From: gnucash-user
[mailto:gnucash-user-bounces+alee212007=satx.rr.com at gnucash.org] On Behalf
Of Chris Henderson
Sent: Monday, April 6, 2015 1:56 AM
To: gnucash-user at gnucash.org
Subject: recording new stocks issued for free

I'm a stock holder of a company. They have now created a new company and
given me stocks in the new company for free.

How do I record this in gnc? I didn't pay anything for these new stocks.

Thanks.
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