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Spin-off Tax Accounting


ericd1

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How do you compute the cost basis for a spin-off?  It's screwing up my numbers in Quicken...

 

I own Marathon Oil Corp (MRO) and they recently spun off their refining and distribution business into a new co., Marathon Petroleum Corp (MPC).

 

I received one share of MPC for every 2 shares of MRO.

 

Is the cost basis adjusted to 2/3's MRO and 1/3 MPC, or something else?

 

 

 

 

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