How do I enter spin off of D. E. Master Blenders from Sara Lee and stock splits and name change of Sara Lee?

Sara Lee spun off of D.E. Master Blenders then immediately under went a 1 for 5 reverse split and then changed its name to Hillshire Brands? This was a very confusing transaction for me to enter in Quicken!  There is no data for the closing prices of these stocks nor how to treat the cost basis.


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With the new information (
), I'll offer what I would do.  

Caveat 1:  I am not a tax pro nor do I pretend to be one.  Consult your tax advisor!  Any information you get from me is worth less than you are paying for it.

Caveat 2:  I am not and was not a SLE shareholder.

1)  I do not care for Quicken's spinoff transaction.  Instead I would
1a)  Enter a REMOVE Shares for all shares of SLE -- 6/28/2012
1b)  For each lot of SLE, I would enter an ADD Shares for the SLE shares, same number of shares as for the lot, 30.19% of the lot basis.  I would enter an ADD Shares for CoffeeCo, same number of shares as for the SLE lot, 69.81% of the SLE lot basis.  Dates of Acquisition would match the dates applicable to the SLE lots.  Dates of transaction all 6/28/2012
2)  For 6/28/2012, DIV from CoffeeCo for $3 / share
3)  6/28/2019 -- SELL all shares CoffeeCo for 9.80 / share.  The SLE pdf description is not explicit if this produces a loss for some lots and only cites if this is a capital gain sale.  If you 9.80 represents a loss for some lot, I suspect you would sell at your basis for a net $0 gain.  See Caveat 1!
4)  6/28/2012 -- BUY DEMB at 9.80/share (or whatever cash was generated by step 3)
5)  6/29/2012 -- STKSPLIT SLE at 1:5 (check to make sure the date works adequately)
6a)  6/29/2012 -- SELL any fractional shares of SLE at $29.03918/share
6b)  6/29/2012 -- SELL any fractional shares of DEMB at $11.77010/share
7)  Either Rename SLE to HSH, or have HSH acquire SLE (1:1)

Other comments:  You may be able to process this using DEMB rather than the semi-fictional CoffeeCo, but I have tried to follow the pdf documentation provided.   I have not at this time worked through this process in a Quicken file, so the process may still require a little (or a lot) debugging.  This procedure is my preference which would be directed toward my general objectives.  Yours may differ -- perhaps substantially.

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q.lurker , Volunteer now using 2014 H&B
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