You enter it exactly as it reads. Your real economic gain was more than that
(50 x $5.30) + (18.5 x $64.58) - $1,064.00 = $395.73
but in this case you recognize the lower of your real gain or the cash received. Since the cash received was $265 that's also your reported profit.
Your basis in the 18.5 shares received is $1,064.00 - $265 (cash) + $265 (gain) = $1,064.00
You can (should) report a basis of ($1,064) / 18.5 x .5 = $28.76 associated with the cash in lieu. You subtract that from the $1,064.00 for a remaining basis of $1,035.24.
Tom Young
