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Is this the correct method to use?

Not quite.

The amount of cash you received is the sale price. The cost would be your original total cost (the price for all 501 shares plus the purchase commission) divided by 501. Subtract the cost from the sale price, and you have your gain or loss.

You don't need to worry about figuring up the sale price - your broker will report that on a 1099B. It should match the cash you actually receive into your account. Since this just happened, you might not have the cash yet, but you will soon.

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