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You're not going to want to hear this, but the "correct" way to calculate your AWE basis is to consider each lot of T you purchased (including dividend reinvestments) separately. You will have to calculate the number of fractional shares of AWE spun off from each purchase and the corresponding cost basis for each of the lots. You can then total the number of shares and the total basis.

This is the strongest argument I know of against DRP plans -- the bookkeeping is exceptionally burdensome.

In any event, you cannot cost average lots for a single security under any circumstances. Average cost basis is only allowed for mutual funds.

Ira
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