The Basics of Basis
To really understand the difficulties behind researching stock basis, you must first learn how to compute basic stock basis. The cost basis of any investment is simply what you paid for it, including any fees and commissions. However, complications arise when there have been changes to the stock. These changes include stock splits, stock dividends, reinvested dividends and capital distributions, as well as changes made to the structure of the company. The following paragraphs will outline the basic methods allowed by the IRS for figuring cost basis, the history behind AT&T, and the computation of cost basis for AT&T Corp. dating back to its pre 1984 divestiture through the present.
Methods for figuring cost basis
The IRS allows for multiple methods for figuring cost basis on stock. The methods allowed are specific share identification, first in first out (FIFO), or average basis. Specific share identification is just what it says; you identify the shares you are selling based on the lot that you purchased them in. With FIFO, the IRS takes the assumption that you sold the first shares you bought. This usually ends up being the least tax efficient way to sell shares, as share prices increase over time and the first share you bought would have the lowest basis. The IRS also allows you to elect to use average basis method. This method allows you to take the average of shares you purchased and multiply it by the amount of shares you are selling. In order to take this election you must send written notice to the broker or servicer of your account. On the following page is an example of a basic computation of basis for each method.
The implication of basis
The importance of figuring out the true cost basis of y...
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http://www.nprg.com/Company/1959-att-wireless-services-inc
To compute for the market value of Tyco?s common stock issued and outstanding, I used the following data:
and Fred Skolnik. 2nd ed. Vol. 17. Detroit: Macmillan Reference USA, 2007. 165-83. Gale Virtual Reference Library. Web. 14 Jan. 2014. .
Imagine if nobody had a cellphone in today’s world. That’s why today everybody has some form of a cellphone contract with the four major companies (AT&T, Sprint, Verizon or T-Mobile) or a less know cellphone provider. AT&T and Verizon Wireless provide more than the other two major companies.
11th ed. By Kelly J. Mays. New York: W W Norton &, 2013. 551-57. Print.
Smithson, Robert. http://www.robertsmithson.com/index_.htm. Ed. Elyse Goldberg and Monika Sziladi. N.p., 2004. Web. 15 Nov. 2011.
AT&T Wireless is the leading wireless telecommunications provider in the US market. The US wireless market constitutes over 243M wireless subscribers. This represents a market penetration of 81%. The wireless market sells mobility of voice and data (video-media, download content and internet access).
11th Ed. Joel Feinberg and Russ Shafer-Landau, eds. Belmont, CA: Wadsworth Group, a division of Thompson Learning, inc. 2002, 53-77.
For recording with the correct cost basis, Telstra must capitalise all costs related to PPE acquisition and ongoing use until disposal. The ongoing use of PPE also means that Telstra must include in the carrying values all associated major repairs and maintenance costs, rather than being expensed elsewhere. Telstra can acquire PPE assets either through purchasing or leasing. When Telstra purchases a PPE item, an auditor can sample and test to consider the accuracy of the assigned cost basis and any depreciation can be recalculated through substantive analytical procedures.
8. Samuelson, Pamela. Copyright’s fair use doctrine and digital data, Association for Computing Machinery., Communications of the ACM; vol. 37, Issue 1; New York, 1994. p. 22.
ed. Vol. 2. New York: Harry N. Abrams, Inc., 1995. 973-974. Yaeger, Bert D. The
Piatt, Mickie. "Copyright." World Book Online. Student. World Book, Web. . - Retrieved from the Briarcliff Manor Middle School Library Media Center
*Reader these next two documents were not used in the product, but are good resources of information.
...2nd ed. Vol. 14. Detroit: Macmillan Reference USA, 2005. 9768-776. Gale Virtual Reference Library. Web. 4 May 2014.
Step 11- Eliminate intercorporate stockholdings, which arises from stock(s) that are in the subsidiary being owned by the parent and are not reportable as stock outstanding in the consolidated statement. Moreover, for the adjustments to the consolidated balance sheet, an individual must debit the subsidiary’s common stock, retained earnings, and additional paid in capital. In addition, they must credit the consolidate stock of subsidiary account for the book value of the intercorporate
2. Should the component costs be figured on a before tax or an after tax basis?