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From: idje@aluxz.UUCP (EISENBERG)
Newsgroups: net.invest
Subject: Re: AT&T Stock Basis Allocation
Message-ID: <132@aluxz.UUCP>
Date: Tue, 3-Jul-84 15:47:24 EDT
Article-I.D.: aluxz.132
Posted: Tue Jul  3 15:47:24 1984
Date-Received: Wed, 4-Jul-84 04:28:49 EDT
References: <723@vax135.UUCP>
Organization: AT&T Bell Laboratories, Allentown, PA
Lines: 7

The following comments may be useful in deciding which method you use
for the stock basis allocation. Using the IRS method has two main
results. First, you incur a tax liability. This liability (usually)
can be avoided using the dividend/interest exclusion. Second, the cost
basis of the new shares is lower using the IRS method as compared
with the ATT method.  This lower cost basis will come in handy when
the stock is sold.