How do I enter the spinoff of AbbVie from Abbott Labs?

According to the Form 10 filed for this spinoff, it was a condition of the transaction that the transaction qualifies as tax-free to Abbott shareholders. This transaction would then be a simple spinoff transaction in the accounting software. No cost basis allocation information is posted on the AbbVie and Abbott Labs web sites. Cost basis allocation in this document is calculated using the opening prices of AbbVie and Abbott Labs on the first day of trading after the spinoff, January 2, 2013.


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:


Here is the information you need to complete the spinoff.


Date: 1/2/2013

Select Parent Security (or Parent Company) : Abbott Labs (ABT)

Remaining Basis Percentage: 47.9751

Cash received: See your broker statement for cash-in-lieu received

Spinoff Security (or Symbol of New Company) : AbbVie (ABBV)

Shares received: 1.00 x (#of ABT shares owned) (Remember to include fractional shares.)

For example, if you owned 100 ABT shares, you should receive 1.00 x 100 = 100 ABBV shares.

Price Per Share: 34.92 (Opening price on 1/2/2013)

Save the transaction and the spinoff has been entered.