I am required to pay quarterly taxes; how do I determine my capital gains/losses related to the shares of Champion that I held for tax purposes?
A. In order to calculate net gain or loss, you must first determine your basis in the Champion shares. Such basis is then subtracted from the total of the fair market value of the IP shares plus the cash you received in order to determine your net gain or loss. Your basis is generally equal to the price you paid for your Champion stock. For example, if you purchased a share of Champion common stock for $20, then your basis would be $20. If you received your Champion common stock as a gift or by inheritance your basis will be calculated differently, and you should consult your tax advisor. The fair market value of the IP shares used in calculating gain or loss will be different if you submitted your Champion shares during the exchange offer or at some subsequent date. If you submitted your Champion shares during the exchange offer, you must value your IP shares on the expiration date of the offer, June 16, 2000. If you did not tender your shares during the exchange offer, you must deter
