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Who received the share dividend?
Individuals who were owners of record of Eaton Corporation at 5p.m. Eastern Standard Time on December 6, 2000 received Axcelis shares from Eaton on December 29, 2000.
How do I determine my cost basis of the Axcelis shares I received?
You will need to determine the cost basis of your Eaton shares from your personal records.

The cost basis for the Axcelis shares received in the dividend is determined by allocating the cost basis of your Eaton shares in proportion to the fair market value of the shares of Eaton and Axcelis immediately after the distribution date.

On January 2, 2001, the first trading day following the distribution date, Eaton opened at $65.25, and Axcelis opened at $8.4375. Using these prices, the tax basis allocation for shareholders is as follows: 86.77% to Eaton shares, and 13.23% to Axcelis shares.
Do I use the dates on which I purchased my Eaton shares to determine the capital gain/loss holding period of the Axcelis shares I received in the distribution?
Yes. The purchase dates of the Eaton shares are used to determine the holding periods of the Axcelis shares distributed.