I've already read the Fool's articles on handlingfractional shares, but I'm not sure any of them applydirectly to my situation.I bought 140 shares of Intel through Schwab a fewyears ago and selected the dividend reinvestmentoption (sure wish I hadn't now!). I paid $70 pershare.Every 3 months, Intel issues a tiny cash dividend.Schwab reinvests this cash in fractional sharesof Intel (usually on the order of 0.04) at the currentshare price. Before the '99 stock split, I hadaccumulated 0.37 fractional shares, giving mea total of 140.37 shares.When the stock split occurred, I ended up with280.37 shares, and cash in lieu of 0.37 sharesin the amount of $22.How do I calculate my cost basis for the 0.37 sharesthat I received cash for? Do IA) Calculate using the FIFO method -- what I paid for the initial 140 shares -- 0.37*$70/2.B) Take the average cost of the initial 280 (split-adj) shares and the 0.37 shares sold.C) Take the average cost of all 280.74 shares, including the prices of the numerous dividend reinvestments.D) None of the above!Any help is greatly appreciated.
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