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If company A spins off company B at 1 share of B for each 10 shares of A, how do I figure the new cost basis of both A and B? It seems to me that the basis for B is the basis of A divided by 11 and the new basis of A is the original basis of A multiplied by 10/11. Also, the basis of B plus the new basis of A should equal the original basis of A. In other words, if I have a cost basis of A of $1100 before the spin-off, the new basis for A is $1000 and the basis for B is $100. Is this correct??

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