XTO energy just issued a dividend in the form of a subsidiary company, Hugoton energy. I'm using Q2005. Reading past subject matter i see i have to list it as a corporate spinoff of XTO and Hugoton as the new company.
I have found a press release which details the transaction:
"XTO Energy Inc. (XTO) today distributed a dividend of .059609 units of Hugoton Royalty Trust (HGT) for each issued and outstanding share of XTO Energy's common stock held as of the April 26, 2006 record date with an ex-dividend date of April 24, 2006. The distribution is a qualified dividend for tax purposes. The basis of the HGT units received is $28.305 per unit, which is the average of the high and low NYSE price traded for the units on May 12, 2006. Cash paid in lieu of fractional shares is based on the net proceeds received by XTO from the third party sale of fractional and unallocated units. The total taxable dividend is the sum of the basis of the units and the cash received. "
But this doens't detail the FMV of XTO right after the spin off that i'm supposed to use to recalculate my basis, it only lists the new cost i'm supposed to enter into Quicken.
Am i missing something? Any help appreciated.
thanks
jason