Merger STI to TFC

rmweiss12

Mergers are a real pain to handle, at least this particular one.
On 12/9/19 I received 227 shares of TFC (Transfer In) for 176 shares of STI (Transfer Out). I also received $50.70 in cash with a cost basis of $47.84.
I entered this as:
Symbol Transfer Out STI 176
Symbol transfer In TFC 227 Cost Basis Override 11,803.49 (from my broker statement)
Deposit Cash $50.70
All on 12/9/19

In the Holdings Tab the Cost Basis for TFC shows up correctly as $11,803.49 but the Avg Book Value is zero. And the Capital Gain shows up incorrectly as $12,785 which equals the market value at that time. The unrealized cap gain on 12/31/19 was only $981.15.

How to fix the zero Avg Book Value which is probably where the problem is? How is Avg Book Value defined / calculated? What's the correct way of entering this merger?
Thanks for clarifying.
Michael

VidasMatelis

Michael,

When you entered transaction for Symbol Transfer Out, did you specify price of the symbol? That price then would be use in calculated unrealized capital gain. For symbol transfer In, you should also specify price. Expectations would be that:
STI Transfer Out Qty * Price = Cash Deposit + TFC Qty * Price.
Lets first fix that and see if you still have any issues.

rmweiss12

You are a Genius! Adding prices fixed the issue. Thanks!
I am still curious about how Avg Book Value is calculated.

VidasMatelis

Avg Book Value formula (DAX) is as following:

Avg Book Value:=CALCULATE(
   DIVIDE(SUMX(Trans, Trans[TotalAmnt]*Report[TransReportExchRate])
      , SUMX(Trans, Trans[QtyChange])
  )
   , FILTER(TransType, OR(TransType[BookValueSign]=1, TransType[TransType]="Split"))
   , DatesBetween(Dates[Date], Blank(), LastDate(Dates[Date]))
) * Report[Qty Held]

This translates to:
[Total Amount Spend buying Symbol FROM THE START] / [Qty Held]
So if you buy, then sell, then buy again, your average will include previous buy transactions too.

rmweiss12

Great; Thanks as always.