Re: What's the proper accounting way to handle a stock split?

[Richard Wackerbarth]

> I've had an exception; I had a situation where a security did a
> "reverse split," where they divided by 3, rounded, and paid me cash for
> the difference.  So for the most part, it was "non-taxable," except for
> the part where they bought one share...

Fortunately we can represent this by two events.
First you "sell" the one share for cash.
Then you exchange the 99 remaining shares for 33 new shares.

Unfortunately, it is not quite as simple as a tax free sale and purchase 
because the basis and effective acquisition date are not those of the date of 
conversion.

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