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Author: jeffstrobel Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: determining gain/loss from stock of merged firms Date: 2/3/1999 2:18 PM
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When Compaq acquired Digital last year, the per share price was $59 -- $30 cash and roughly 1 share of CPQ (at $29/) for each share of Digital. My question is how do I determine the gain or loss on this deal for my own taxes.

For example, if I had 100 shares of Digital (all held for more than one year) with 50 of them purchased at $65/share and 50 at $45, would my net gain be a loss of $300 (50*(59-65)) plus a gain of $700 (50*(59-45)) resulting in a gain of $400?

Any help or pointers are greatly appreciated.

jeff
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