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SPINOFF: Viacom-CBS
Issue:
On 12/31/05, Viacom split into two companies: New Viacom and CBS Corp.
Cause:
n/a
Resolution:
Enter the spinoff of CBS from Viacom, followed by a 1 for 2 reverse split of Viacom.
A few considerations:
* The two transactions need to be entered a day apart
* Neither transaction can be entered on 12/31 for tax calculation reasons
* The ticker symbols will be a bit confusing (Class B tickers: VIAB and CBS (no B on the end), Class A tickers: VIA (no A) and CBSA)
1. Enter the spinoff of CBS from Viacom on 12/29. Make sure you enter the correct Remaining Basis.
Class B Tax Basis Fractions:
VIAB: 0.603768 (remaining basis)
CBS: 0.396232
Class A Tax Basis Fractions:
VIA 0.603443
CBSA: 0.396559
2. After the spinoff is entered, on the NEXT day, enter a 1 for 2 split of your Viacom shares and include any cash in lieu of fractional shares paid.
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