Covidien spun off Mallinckrodt. Covidien is considered the parent company.
The cost basis allocation information from IRS form 8937 was found in the Investor Relations area of the Covidien web site.
This action is a simple spinoff transaction in the accounting software. The information below is based on the information available from the cost basis allocation information on the Covidien form 8937.
The Spinoff Entry
Go to Transactions > Spinoff or Accounting > Securities > Record spinoff of securities depending on the version of the software being used. If you are unfamiliar with spinoff transactions you can get help at this URL: https://www.iclub.com/support/kb/default.asp?page=normal_spinoff
Here is the information you need to complete the spinoff.
Select Parent Security (or Parent Company) : Covidien (COV)
Remaining Basis Percentage: 91.257
Cash received: See your broker statement for cash-in-lieu received
Spinoff Security (or Symbol of New Company) : Mallinckrodt (MNK)
Shares received : .125 x (#of COV shares owned) (Remember to include fractional shares.)
For example, if you owned 100 COV shares, you should receive .125 x 100 = 12.5 MNK shares.
Price Per Share : 44.00 (closing price on 6/28/2013)
Save the transaction and the spinoff has been entered.