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I expect that the two questions I pose here will look trivial to the tax experts who visit this board, but they give me some amount of headache, since I prepare my own taxes. So... I would appreciate an answer.

1. I own stock in a company which recently spinned off one of its businesses. I got a number of shares of the new company for each 10 shares of the old company. The broker sent me a form 1099-B, showing $5.18 as gross proceeds. He explains that instead of giving me fractional shares, the company decided to give me cash. My question is: how is this amount to be declared to the IRS? Short term capital gains? Dividend? Does anyone know? I realize it's a minor amount, but I want to report it correctly.

2. A couple of years ago I bought 30 shares of a stock. Since then the stock split a couple of times and I ended up with 180 shares, which I recently sold. My problem is: how do I declare this correctly on the tax form? I fear that showing I bought 30 shares and then sold 180 shares would not be the correct way to present this transaction, and it would look odd from the IRS's point of view. What is the correct way to report this?

Many thanks.
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