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How does Quicken handle a corporate acquisition paid with a combination of cash and stock?

On May 8, 2020, Abbvie acquired Allergan for a combination of $120.30 per share PLUS 0.866 shares of Abbvie for each share of Allergan. Quicken does not seem to have a method for recording this transaction.
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Best Answers

  • Philip Litwinoff
    Philip Litwinoff Member ✭✭
    Accepted Answer
    Thank you for the extra research you did on this transaction. I agree wholeheartedly with you advice (which is what I had suggested to another responder). It just seemed that since this is a taxable transaction, the history of the Allergan basis does not need to carried forward into the new company. I just could not see where Quicken helped you dissect the transactions into the mechanical bookkeeping side.

Answers

  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    What Q product are you running and what BUILD of that product?  Do HELP, About Quicken for this info.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • splasher
    splasher SuperUser ✭✭✭✭
    Yes it does.  Use the "Corporate Acquisition (stock for stock)" transaction to take care of the stock trade part and a separate transaction to cover the cash per share income.
    -splasher  using Q since 1996 -  Subscription  -  Win10
    -also older versions as needed for testing
    -Questions? Check out the  Quicken Windows FAQ list
  • Philip Litwinoff
    Philip Litwinoff Member ✭✭
    > @NotACPA said:
    > What Q product are you running and what BUILD of that product?  Do HELP, About Quicken for this info.

    Quicken 2020; Version R26.21; Build 27.1.26.21
  • Philip Litwinoff
    Philip Litwinoff Member ✭✭
    > @splasher said:
    > Yes it does.  Use the "Corporate Acquisition (stock for stock)" transaction to take care of the stock trade part and a separate transaction to cover the cash per share income.

    If I do your suggestion, the stock does work out, but there are no shares left to apply the cash against.

    What about first "selling" the Allergan stock for the cash price paid by Abbvie, and then "Add - Shares Added" to put the new Abbvie shares into the portfolio? I think that works.
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    What's your specific Q product?  Deluxe? Premier?  Home & Business?

    And do a "Corporate Securities Spin-off" to receive the Abbvie and then
    Sell the Allergan.
    If you received "Cash in Lieu" for any fractional shares of Abbvie, then sell those fractions.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • splasher
    splasher SuperUser ✭✭✭✭
    > @splasher said:
    > Yes it does.  Use the "Corporate Acquisition (stock for stock)" transaction to take care of the stock trade part and a separate transaction to cover the cash per share income.

    If I do your suggestion, the stock does work out, but there are no shares left to apply the cash against.

    What about first "selling" the Allergan stock for the cash price paid by Abbvie, and then "Add - Shares Added" to put the new Abbvie shares into the portfolio? I think that works.
    The cash part is done with your calculator, but you should be able to get that amount from the brokerage.  It is not something that Quicken will calculate for you. 
    You don't want to do a sell and add since you will lose all the history of the lots of the original Allergan purchases. 
    In the "Corp Acq" process, Q removes all of the Allergan in a single remove and add back in a transaction for Abbvie for each of the Allergan lots.

    -splasher  using Q since 1996 -  Subscription  -  Win10
    -also older versions as needed for testing
    -Questions? Check out the  Quicken Windows FAQ list
  • Philip Litwinoff
    Philip Litwinoff Member ✭✭
    Accepted Answer
    Thank you for the extra research you did on this transaction. I agree wholeheartedly with you advice (which is what I had suggested to another responder). It just seemed that since this is a taxable transaction, the history of the Allergan basis does not need to carried forward into the new company. I just could not see where Quicken helped you dissect the transactions into the mechanical bookkeeping side.
  • splasher
    splasher SuperUser ✭✭✭✭
    edited May 2020
    I just knew I should have stayed away from this one and leave it for @q_lurker but I thought I had learned enough from him to answer.  Boy, was I wrong.  Next time I'll keep my fingers off my keyboard.  :)
    -splasher  using Q since 1996 -  Subscription  -  Win10
    -also older versions as needed for testing
    -Questions? Check out the  Quicken Windows FAQ list
This discussion has been closed.