Viacom, Inc., reports the following footnote in its \(200510-\mathrm{K}\).

a. Describe the accounting for a split-off.

b. How will the proposed split-off affect the number of Viacom shares outstanding?

c. Under what circumstances will Viacom be able to report a gain for this proposed split-off?

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Discontinued Operations In 2004, Viacom completed the exchange offer for the split-off of Blockbuster Inc. ("Blockbuster") (NYSE: BBI and BBI.B). Under the terms of the offer, Viacom accepted 27,961,165 shares of Viacom common stock in exchange for the 144 million common shares of Blockbuster that Viacom owned. Each share of Viacom Class A or Class B common stock accepted for exchange by Viacom was exchanged for 5.15 shares of Blockbuster common stock, consisting of 2.575 shares of Blockbuster class A common stock and 2.575 shares of Blockbuster class B common stock.