How to record a tax-free corporate merger (without losing the holding period and lots)

Question

Using Premier 2019.

I am working on the cost basis of the Baby Bells. NYNEX and Bell Atlantic merged on 08/14/1997. The S-4 reports that the merger would be tax-free (except for sales of fractional shares).

My understanding is that the lots of the absorbed stock (NYNEX) retain their original purchase dates for tax purchases (long term vs short term gains).

I used "Corporate Acquisition" and ended up with a single lot of NYNEX dated 08/14/1997. Is there a method that preserves the original purchase date and lots?

Thanks.

D Bunker · Accepted Answer

I repeated what I thought was the same
operation (Corporate Acquisition), but got the desired result this time,
with lots and proper dates. A mystery indeed! Thanks.