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If a company spins off a division into a seperate company, what is the best way of handling these type of transactions. The number of shares of stock in the parent company does not change, only the cost basis. The number of shares for the new company need to be entered based on the cost basis from the parent company.

I don't find anything in your User Guide on how to handle this. Maybe multiple transactions would allow this to work.

Please Help....

Posted by: robertjb

You can use the Transfer In transaction to set the shares and basis of the spinoff. If necessary, you can use the Return of Capital transaction to reduce the basis of the original company.

Anatoly Ivasyuk
DTLink Software

Posted by: DTLink Support (Anatoly)