Considerations
If you received a combination of cash and shares, and the merger was a taxable event (T):
Calculate the value of the new package received by multiplying the new share ratio (The "new share ratio" determines the number of new shares received for each old share you own) by the fair market value.(FMV) of the new shares on the effective date of the merger as supplied by the company, and adding the cash received per share to this figure. For example, if the FMV was $10.00 and you received .5 of a share of the new stock for each old share you owned, your new share value is $5.00. If you received $1.00 in cash per old share, add this to the $5.00 new share value to arrive at your package value of $6 ($10*.5 + $1). This value becomes your sell price.
A. Record a Sell in GT using these guidelines:
Sell Date = Merger effective date (the date set by the company and stock exchange for de-listing the old security).
Shares = Your original number of shares.
Price = The new package value.
B. Record one buy for your total new shares received:
Buy Date = Merger effective date (the date set by the company and stock exchange for de-listing the old security).
Price = The FMV of the new stock on effective date.