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Technology Stocks : 3DFX -- Ignore unavailable to you. Want to Upgrade?

To: jttmab who wrote (10297)	1/26/1999 10:21:00 PM
From: Laptev	Respond to of 16960

You need a PRICE X Quantity for a cost basis. But thanks for the cheerleading. I am guessing I answered the question correctly with ($7.50/.65)=$11.53 Ie: Buy 2000 STBI @ $7.5 = $15,000 Converts to 1300 TDFX on March XX, 1999. Current value @ $20 = $26,000 Basis cost: $15,000/1300 = $11.5384 (same as above) So would Schedule D read?: Buy 1300 units of TDFX at $11.5384 = $15,000 Sell 1300 units of TDFX at $20 = $26,000 or simply Buy 2000 units of STBI at $7.5 = $15,000 Sell 1300 units of TDFX at $20 = $26,000 And what if I decide to hold - am I starting a new basis at $20, or $11.5384? Sounds like an audit red flag to me. Any real knowledge on the matter of buyout tax implications?