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On 5/11/2001 after the market close, you received 0.1646 shares of Roxio Inc (ROXI) for each share of Adaptec Inc (ADPT) that you owned on 4/30/2001. Based on the market prices at the close on 5/12/2001 of $14.23 for ROXI and $10.55 for ADPT, your cost allocation to your total ROXI shares is 18.17% of your original cost for ADPT. This is based on the following computation:
ROXI $14.23 x 0.1646 = $2.342258
ADPT $10.55 x 1.0 = $10.55
$2.342258 =+ $10.55 = $12.892258
$2.342258 divided by $12.892258 = .1817
You can use the free spinoff calculator at www.costbasis.com to compute your cost allocations.
What else can I help you with?
How do you figure cost basis in the Kraft mondelez spinoff?
To determine the cost basis in the Kraft Heinz spinoff of Mondelez, you need to allocate your original investment between the two companies based on their relative fair market values at the time of the spinoff. Typically, the cost basis is calculated by taking the total value of the shares held before the spinoff and dividing it proportionally between Kraft Heinz and Mondelez based on their stock prices at the distribution date. This allocation will help you accurately report gains or losses when you eventually sell your shares. It is advisable to consult IRS guidelines or a tax professional for precise calculations.
What is the cost basis of altrias spinoff?
The cost basis of Altria's spinoff can be determined by allocating the original cost basis of Altria shares between the parent company and the new spinoff company. Typically, this allocation is based on the relative fair market values of both entities at the time of the spinoff. Investors usually receive specific instructions from Altria regarding how to calculate their cost basis for tax purposes, which may include guidance on the percentage split of the original investment. It's advisable for shareholders to consult tax professionals or financial advisors for precise calculations tailored to their circumstances.
What is the Formula for cost allocation rate?
allocation rate=cost pool amount/ cost driver volume
Is the selection of an appropriate cost allocation base more important for a single-stage cost allocation system than it is for a two-stage cost allocation system?
no
What is cost objectives?
Cost objectives determines the cost allocation. It determines the product, service or department that will receive the allocation.
Is cost allocation base a cost driver?
Yes, it is. When used for allocating costs, a cost driver is often called a cost-allocation base
How does one figure the cost basis of some of these 'baby bells'?
To determine the cost basis of "baby bells," or the regional telecommunications companies that emerged from the breakup of AT&T, you typically start with the original investment made in AT&T shares and then allocate that cost to the new shares received during the breakup. This can be done by using the allocation percentages provided by the IRS or the companies themselves at the time of the spinoff. Additionally, any dividends received, adjustments for stock splits, or other corporate actions should be taken into account to accurately calculate the current cost basis for tax purposes.
What is arbitrary allocation in cost accounting?
allocate cost arbitrarily
Importance of cost allocation?
Cost allocation allows a company to determine the amount each item produced will cost. An effective cost allocation will be able to track down the shared costs of production not only to the divisions but also to the products and customers that use those costs.
What is the difference between overhead allocation with overhead apportionment?
The following are the differences between allocation and apportionment. 1. Allocation costs are directly allocated to cost centre. Overhead which cannot be directly allocated are apportioned on some suitable basis. 2. Allocation allots whole amount of cost to cost centre or cost unit where as apportionment allots part of cost to cost centre or cost unit. 3. No basis required for allocation. Apportionment is made on the basis of area, assets value, number of workers etc.
Cost basis percentages merger amerisourse and pharmerica?
Allocate .0289 (2.89%) of your cost basis in AmerisourceBergen to Pharmerica after the spinoff of .0833752 shares of Pharmerica for each AmerisourceBergen on 12/31/2007. Allocate .9711 (97.11%) to AmerisourceBergen as your new cost basis for AmerisourceBergen. The free spinoff calculator at www.costbasis.com can help you with the math.
What is cost absorption in cost accounting?
Simply: allocation of cost to a cost centrehttp://www.answers.com/topic/cost-absorption:Allocation of cost to a product, process, or department using a rational allocation basis. For example, rent expense can be allocated to a department based on square footage.
