I have two scenarios in my portfolio in which I need guidance. I need to determine my cost basis (correct term?) and capital gains tax. I am currently in the 28% tax bracket. 1. I own a stock, V (paid $1000 for 100 shares or $10/share), for >18 months and it merges with another company to form company W (they increase my original 100 shares of V to 300 shares of W after the merger). If I sell immediately after the merger a)do I pay long or short term capital gains and b)how do I calculate my per share cost for this gain? Is it simply 1000/300 or 30/share?2. I also own stock, Y (paid $4000 for 100 shares or $40/share), for > 18 months and it spins-off Company Z. Because I own 100 shares of Y, I am given 25 shares of Z. If I want to sell Z, a)how do I calculate my per share price and b) would it be considered a short or long term capital gain? Is my long term cost basis for Y unchanged or does the spin-off correct for the loss of Z?I know this is confusing and I am not sure if I have supplied all the necessary info but I would appreciate anyone's advice and/or direction to my questions.Thanks
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