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Financial Stocks/mandatory merger


Hi Paul,
Please let me know if you think Im calculating this correctly. Both are from NYSE.

11.07.13 bought 100sh of RNF for $1942.00
On 04.04.16, there was a mandatory merger with UAN.

On 04.04.16 I received 104sh of UAN plus $257.00, minus $20.00 restructuring fee.
On 04.04.16, UAN traded at $7.79

So, UAN is worth 104sh times $7.79 = $810.16 plus the $257.00 = $1067.16

I originally paid $1942.00.
The difference between 1942.00 and 1067.16 is $874.84

So, when I sell UAN, do I use the $7.79 buy price?
And if so, how do I write up the loss on taxes for the $874.84
Do I use the 1942.00 257.00 = 1685.00 divided by the 104sh = 16.20per share. Is this what I paid per share of UAN?

Thank you,

Thank you for the question!

Unfortunately I am not an expert on taxes, regarding how you would declare that transaction.  I believe that you would calculate using your $1942 purchase price, but you should check that with a tax professional.

Best Regards,
Paul Henneman
ValuEngine Inc

Financial Stocks

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Paul Henneman


Stock forecasting and fair market valuations. I am happy to try to answer any questions for investors trying to manage their funds for the future. I will NOT ANSWER HOME WORK questions from students in finance or economics. Over half the questions I get are from students studying finance, located in India. Having someone on the internet answer your homework questions is not the way to build the knowledge you need for a career. All other questions are welcome and encouraged.


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Florida International University, University of Florida, over 20 years in the business.

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