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I am a little confused as to how to calculate the cost basis of the RTHa shares I have been given by GM as a result of the spin-off of Hughes.

Hypothetically: Say I made the following purchases of GM stock:

6/24/96   50 Shares @ 50    Cost: $2,500
9/10/96   10 Shares @ 40    Cost: $  400
12/11/96  20 Shares @ 30    Cost: $  600
3/11/97    5 Shares @ 45    Cost: $  225
6/11/97   15 Shares @ 35    Cost: $  525
9/11/97   25 Shares @ 25    Cost: $  625

And now have 125 Shares with a total cost basis of 
$ 4,875. I am issued 310 shares of Raytheon Class A stock on 12/18/97, tax-free. (GM gives me .06377 shares of Raytheon Class A shares for each share of GM I own.)(The reamaining .87875 fraction of a share is to be issued to me later in cash.)

My questions are:
1. What is the cost basis of the 310 Raytheon Class A Shares?
2. Do I need divide the 310 into six lots, each with a different cost basis per share, to match the six purchases of GM I made; in order to segregate short from medium from long term gains?
3. If so, how's the math done?

-- SHenrie
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