I have a client that received cash and stock in the Express Scripts Cigna Merger. She called Charles Schwab to find the cost basis for the cash received for the 68 shares of Express Scripts and was told the basis is zero because it was a 368A Cash Merger. Would this be a true statement "the basis is zero"? If this is a true statement, I assume the gain she reports and pays tax on becomes part of the basis for the shares of Cigna stock she received?