Apogent / Sybron Dental Spin-Off
| HelpRegister |
Apogent / Sybron Dental Spin-Off This is part of a continuing series on entering Spin-Offs and Mergers in
bivio and NCA. We will take an actual case to illustrate how to enter this transaction, both
in the bivio and NCA software programs. To record the transaction in bivio............................. Go to Accounting>Investments. Click on Apogent. When the Apogent screen comes up, click on the Spin Off Icon. For the ticker symbol for Sybron , enter SYD [see note A]. For Transaction Date, enter 12/11/2000. For the number of shares of Sybron issued, enter 33.33333 [it is very important to include any fractional shares with the number of shares received of the new company.] For Remaining Basis Percentage, enter 81.75 [do not enter this as .8175 and do not enter a percent sign.] Enter the amount of cash received in lieu of the fractional shares. Enter the account that this cash went to, probably Broker. You can include a remark, and then hit OK. Your transaction has been entered and the fractional share has been sold for the amount that you indicated. Note A - As of this writing, the data provider for bivio did not have SYD in its quote base. Yahoo also did not have quotes available. Prices were available, however, from Quicken and MSN. Until SYD is recognized by bivio's program, you will have to consider it an unlisted stock. You will know that you have to do this, if you receive an error message after entering all the data. The message will say, in red, 'Please correct the errors listed below and resubmit.' Above the spin-off ticker box will appear another message in red saying 'not found'. Click on 'New Unlisted'. You will get a new screen. For ticker, enter SYD. For full name, enter Sybron Dental Specialties. Click on OK. This will take you back to the original spin-off form. Click on OK. This will take you to a form which wants a value for SYD as of 12/11/2000. Enter 15.375. Click Ok, and you are through. The closing prices of Sybron, since the spin-off, can be found at http://www.bivio.com/trez_talk/files/stocks/syd-prices.csv
To record the transaction with NCA software............. Go to Securities>Enter New Transaction>Spin Off. For Spin Off Company, select Sybron [If Sybron does not appear in the drop down box, select New Company, and enter all the data for Sybron . After you are through, be sure that Sybron is listed as the spin off security on the Spin Off form]. Enter the shares received, including any fractional shares. In our example, we would enter 33.33333. For price per share, enter 15.375. Click on the Date box, and enter 10/11/00. For Parent Company, select Apogent. In Rem. Basis Fraction, enter .8175.Hit Tab, and the price for the parent company, after the spin off, will appear. [Note - you could have left the Rem. Basis Fraction box blank, and entered the price for the parent company. This would calculate the Rem. Basis Fraction. I always advocate entering the Rem. Basis Fraction, as published by the company, since you can not always be sure which price - closing, average, etc. they are using for the calculation.] Do not enter anything for cash received. NCA has a glitch, which records the sale of a fractional share on the basis of the price that you have entered for the spin off company, rather than the actual cash received. We will enter the sale of the fractional share later. Enter a remark, if you wish, and click on OK. Now, we must enter the sale of the fractional share in the NCA software. Go to Securities|Enter New Transaction|Sell. For security, select Sybron . For date, select 12/11/00. Select the account where the cash was received [probably Broker]. For shares, enter the fractional amount [in our example .33333]. For Sales Price, enter the amount of cash that you received in lieu of fractional share. Enter a remark, if desired, and click on OK. You have now entered the transaction in the NCA software. The result of all of this is that we have allocated a portion of our original tax basis in Apogent to the shares of Sybron received. In our example, we have allocated 81.75% of the original cost basis of $2768.25 to Apogent after the spin-off. In addition, we have recorded the sale [and resultant gain or loss] for the portion of the Sybron shares received that were less than one. The holding period for the Sybron shares will be the same as the holding period for the Apogent shares. |
|
||||||