International Paper spun off Xpedx Intermediate, which immediately merged with Unisource. The merged company changed its name to Veritiv. International Paper is the parent company. Due to the structure of the spinoff and merger, the accounting entry can be simplified to a spinoff of Veritiv.
The cost basis allocation information is from IRS form 8937 and can be found on the International Paper web site at:
https://www.internationalpaper.com/US/EN/Company/Investors/SpinOffVeritiv.html
This action can be entered as 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 International Paper web site. Some numbers are rounded.
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.
Date: 7/1/2014
Select Parent Security (or Parent Company) : International Paper (IP)
Remaining Basis Percentage: 98.5849
Cash received: See your broker statement for cash-in-lieu received
Spinoff Security (or Symbol of New Company) : Veritiv (VRTV)
Shares received : .01912 x (#of IP shares owned) (Remember to include fractional shares.)
For example, if you owned 100 IP shares, you should receive .01912 x 100 = 1.912 VRTV shares.
Price Per Share : 37.60 (Closing price on 7/1/2014)
Save the transaction and the spinoff has been entered.