| FairPoint Communications spinoff by Verizon |
FairPoint Communications Inc (stock
symbol FRP) common stock was received
on April 1, 2008, in a tax-free spinoff
from Verizon (symbol VZ). One share of
FairPoint was distributed for every
53.0245 shares of Verizon. This equates
to a spinoff ratio of .018859 per share
of Verizon.
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To determine the cost basis of FairPoint using the opening price relative market
value method, use the following percentages to allocate your cost basis in Verizon
to the new stock:
FairPoint Communications Inc (FRP) 00.463 % of cost basis of Verizon
Verizon Communications (VZ) 99.537 % of cost basis of Verizon
Total 100.000 %
IMPORTANT: Your cost basis for Verizon must first be adjusted for all prior corporate
reorganization actions, such as the MCI merger, AT&T divestiture, Idearc spinoff, etc.
For a complete listing of past corporate actions and appropriate cost allocation factors,
consult this website:
http://investor.verizon.com/shareowner/cost_basis_worksheet.aspx
FairPoint Communications of Charlotte, NC filed for Chapter 11 bankruptcy on October 26, 2009 and emerged from bankruptcy on January 13, 2011. Ownership of the company was given to the creditors, and the former common shares were cancelled with no value. You can claim a capital loss for your entire FairPoint cost basis in 2009 or later.
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Use our handy spinoff calculator to
compute your new cost basis and the
gain or loss on any "cash in lieu" of
fractional shares payment. Just click on
the image of the spinner to the right and
then select "Fairpoint Communications"
from the drop-down menu. Many fields
will be pre-filled for you. Simply add your
own cost basis information for Verizon.
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| Spinoff Calculator |
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