MinhT
Expert Alumni

Deductions & credits

In a 2.5 to 1 reverse split, your number shares is divided by 2.5 (1000 old shares became 400 new shares) and your cost basis is multiplied by 2.5 ($10 per old share became $25 per new share).

The cost basis for the 200 shares you sold is $25 x 200 = $5,000.

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