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From: Andrew on 10 Dec 2009 19:54
Hope someone can help and consider this situation. Not urgent, but
reassurance would be nice.

Because of bookkeeping (I probably set this up wrong a 30 years ago, but be
that as it may), I had a security for 100 shares in certificate form I
originally named called "XYZ 100" . It spun off re-invested dividends in the
same account called 'XYZ Dividend' (say, I got 200 new shares for the sake
of argument). They listed both in a certificate section (for 100) and a
book entry section (for 200), so it was always easier for me to track as if
they were different.

I recently re-registered the original 100 shares I held in certificate
(surrendered the certificate I held) and the 200 shares I had in book form
and they created a NEW account with both sets of shares in book form
combined total of 300. So far, so good.

In Quicken, I'd like to move both the original 100 shares and 200
reinvested into a SINGLE named combined security since it is now listed as
same AND KEEP THE COST BASIS of the components.

So first, I simply moved the 100 shares of 'XYZ 100' into a newly named
account and renamed them to 'XYZ' via the Quicken dialogs. So far, so good.

I moved the 200 shares of 'XYZ Dividend' into the new account, but could NOT
rename 'XYZ Dividend' to 'XYZ' since now this name is in use.

So what I did was a 'corporate acquisition' 1 for 1 share ("XYZ" acquiring
"XYZ Dividend") and used the closing price of "XYZ" of the date of the
consolidation. Seems to have worked, although a capital gains report shows
a sale off ALL the originals, but ultimately leading to a zero cost basis in
the report. In a test account, I modified the price per share to be
constant on the two days of the trade before and after to keep all things
the same, and Quicken has maintained after the trade the cost basis that is
equal to the sum of the two components("XYZ 100" and "XYZ Dividend" the day
before. So I think all is well.

Is this the best way of doing this?
--------------------------------------
Regards -

- Andrew


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