How do I calculate cost basis after the Expedia spin-off?
While we cannot tell you how to calculate your cost basis for the reasons discussed below in “How do I determine the cost basis of my IAC shares?”, the following data points should assist you with your calculation. IAC and Expedia began trading as independent public companies on August 9, 2005. The opening prices of both stocks were determined by the August 8, 2005 closing prices of Expedia common stock in the “when-issued” market ($22.50) and by the closing price IAC common stock ($25.30), with the latter adjusted for the 1-for-2 reverse stock split and spin-off of Expedia [($25.30*2)-$22.50 = $28.10]. The resulting split in value between IACI and EXPE shares was approximately 56% and 44%, respectively. Back to top17.
