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What account should be debited using double entry accounting for a stock spinoff transaction

Personal Finance & Money Asked by jtpalmer on January 9, 2021

I use ledger for tracking my personal finances. I’m trying to record a transaction where a stock I owned spun off shares of another company. (The specific case I’m referring to is when BioTime spun off AgeX Therapetics.)

I owned shares of BTX and received shares of AGE. Should this be recorded like a dividend where an asset is credited with the shares and an income account is debited? Should there be a specific account used to indicate that the AGE shares were spun off from BTX?

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