Cal,
OK. per your suggestion, I did as an "Add Shares" at the 'strike' price [the
price at which I can sell them back to Lucent any time prior to the
epiration']. I entered as an equity option. To show the transaction for
tax purposes, I entered a separate LT cap gain payout equal to the strike
price times the number of shares [with no 'transfer to' so that no cash gets
moved around]. My reasoning [subject to my CPA blessing] is that the
receipt of the warrant is just a payback [partial] of the LT cap loss I
reported in previous years. I used the strike price since that will be my
basis on the warrant because I'll sell it back to Lucent for that value if
the market price never exceeds it. Right now the market price on the
warrant is $1.61 vs. the strike price of $2.75.
Thanks for your help,
Mike
mloy[at]citadelenterprises.com
"Cal Learner-- MVP" <via_newsgroup[at]please.tnx> wrote in message
news:357ur0d1810q16l35v9ft6tv7e3bmhs384[at]4ax.com...
- quote -

In microsoft.public.money, Mike wrote:

- quote -

Enter them as equity options, if your version lets you. Otherwise
enter them as a stock.

You can do AddShares, or you can enter them as a Buy using actual
value. Enter an income item into your cash transactions register. I
don't know where to enter the amount of value on your income tax.

I owned Lucent stock (LU) several years ago (I sold after the bottom dropped
out). Because of a class-action suit for accounting malpractice, Lucent has
just paid 'warrants' expiring in 2007 to owners of its stock during the
period in question. The 'strike' price is $2.75/share. How do I enter this
transaction in M2004?

Mike
mloy[at]citadelenterprises.com