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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.

[snip]

My questions are:
1. What is the cost basis of the 310 Raytheon Class A Shares?>>

You will receive guidance on this from GM. Assuming this is a tax-free spin-off, your basis in your old shares will be allocated between old and new based on the relative fair market values at the time of the spin-off. For example, if the Raytheon shares you receive have a FMV equal to 8% of the total, and GM shares have a FMV equal to 92%, then for each lot of shares you will allocate the basis 92% to the GM shares you retain and 8% to the Raytheon shares you received.

<<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?>>

Yes, you do this not only to segregate long-term from short-term, but also to segregate lots that have different basis per share.

<<3. If so, how's the math done?>>>

Ooooh! I am SO GLAD my T was in my IRA and that my GM is in the IRA, too. 8-) I need not figure any of this out. 8-)
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