Last year a bank stock I owned merged with MTB. I have owned my bank stock since July, 2005 and accumulated 1,314 shares thru purchases and DRIP. I purchased a block of the bank stock 4 times (July 2005, Jan 2006, Aug, 2006, Sep 2007). After the merger, I received some MTB stock, $1400 cash for the sale of 141.67 shares of my bank stock and $68 thru the sale of fractional shares of MTB.
I kept a journal of purchases and DRIP by Date, Entry, Shares, Cumulative Shares, Net Cost and Cumulative Cost.
I'm using FIFO as a starting point in the cost basis. The original purchase of 500 shares on July 2005 covers the sale of 141.67 shares of my bank stock after the merger in 2015. Do, I exclude the net costs of purchases in Jan 2006, Aug 2006 & Sept 2007) when computing cost basis?