Jazz buyout of GWPH

[bkcmurphy]

I had a basis in GWPH of $12,235. It was bought out by Jazz pharmaceuticals for $20,000 cash and stock valued at $2,003. Would the stock be considered as part of the gain in this transaction?  

[PattiF]

To clarify your question, more information is needed. How many shares of stock did you have before the buyout? How many shares of JAZZ did you receive?

[bkcmurphy]

100sh GWPH. 12sh Jazz afterwards 

[JohnB5677]

Yes, the $2,003 of stock is included in the total sale price of GWPH.  So if I interpret your posting correctly:

• $20,000 Cash
• $2,003 Stock
• Total sale $22,003
• Basis $12,235
• Gain $9,768

The basis in the new stock will be $2,003 \ 12 Shares = $166,92 per Share