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We bought 500 shares of a company stock last December for about $6/share. The company was bought by another company in June and we received $7 cash + .55 shares of the new company for each share of the old company (=$3500 and 275 shares). We are still holding the 275 shares of the new company. Any ideas on how to calculate the cost basis for the $3500 cash that we receive? Do we use the 500 *$6 = $3000 for the basis and then the proceeds are $3500 now and then a $0 cost basis when we sell the 275 shares of the new company? Or would the original $3000 cost basis be split between the cash payout and the new shares? Does anyone know where I should look to get this info?
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