How should we account for the new WorldCom/MCIT tracking stock?
Greg asked....
 Worldcom has issued a tracking stock, MCIT to WCOM shareholders.  We have received one share of MCIT for every 25 shares of WCOM. I do not think this was a spinoff.  We did not pay any additional money for them.     How do we enter these new shares?
Actually, according to the WCOM web site found at
you'll see that this transaction should indeed be treated as though it was a spinoff.   96.11% of your original cost basis will be allocated to your  WorldCom shares and 3.89% of your original cost basis in WCOM will be allocated to the shares you received, including any fractional shares deemed received in which you actually received cash in lieu of the shares.
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Jerry Dressel
St.Louis, Missouri