Tax Basis Worksheet
Please be aware that the information contained herein is general in nature and should not be construed to be legal, business, or tax advice. You should consult your personal tax advisor as to the particular tax consequences of each transaction highlighted here, including the applicability and effect of any state, local, and foreign tax laws.
On February 7, 2001, EMC Corp (“EMC”) distributed a dividend of shares of Class A stock of McDATA Corporation owned by EMC to its shareholders of record of January 24, 2001. Shareholders of EMC received 3 shares of McDATA Class A common stock for every 100 shares of EMC owned. Since this special distribution (of McDATA Class A stock) was a tax-free distribution, the tax basis allocation of the spin-off should be:
EMC Corp 97.81%
McDATA Class A 2.19%
(Based upon the cost basis of EMC stock purchased or owned prior to 01/24/2001)
For detailed information please go to Investor Relations on the EMC Corp. website www.emc.com