What is my capital gains tax due in year 2004 from sale of following
stock (from first brokerage account and from second brokerage account)
based on the transactions listed below?

Purchased 25 shares of Agouron on 07/08/1996 @ 43.000 for total price
of $1094.95.  This transaction was made in my first brokerage account.

Account Statement of 08/1997 in first brokerage account reads as follows:
Activity Date:  08/28/97
Transaction:    Dividend
Quantity:       25
Description:    Dividend and Interest: Agouron Pharm.

Account Positions on Statement of 08/1997 then showed holdings of 50
Agouron (AGPH) @ 44.000 for a value of $2,200.00.

Merger of 50 Agouron on 05/19/99 to Warner Lambert.
Account Positions on Statement of 05/1999 then showed holding of 44
Warner Lambert (WLA) @ 62.00 for a value of $2,728.00.

Merger of 44 Warner Lambert on 06/22/00 to 121 Pfizer shares.
Account Positions on Statement of 06/2000 then showed holding of 121
Pfizer (PFE) @ 48.00 for a value of $5,808.00 in my first brokerage
account.

Transfer 50 Pfizer shares to my second brokerage account on 04/11/02 @
36.7600 with a value of $1,838.00 from my first brokerage account.

Sold 71 Pfizer from first brokerage account  on 01/28/04 @ 36.16000
for a sale price of $2,567.36 with commission of $19.99 and fees of
$3.13 for a net price of $2,544.24.

Sold 50 Pfizer from second brokerage account on 09/20/04 for a sale
price of #1,570.00 with commission of $24.95 and a fee of .04 for a
net price of $1,545.01.

I need the actual figures of my capital gains from both sales in 2004
for my tax obligations in 2004, not just a theoretical explanation of
the process.

Thanks

The solution to your problem is to calculate the cost basis of your
Pfizer shares, multiply that by the number of shares sold, and then
subtract that from your sales proceeds.

You began with 25 shares and wound up with 121 shares.  Because none
of these share exchanges were taxable events (see sources), your total
cost basis was unaffected by these transactions.  As a result, we can
simply divide your total cost basis by 121 to determine your cost
basis in Pfizer shares.  Your total purchase price of $1094.95/121 =
$9.04917.

For your first sale of 71 shares, your cost basis is 71 multiplied by
$9.04917 or $642.49.  Subtracting this from your proceeds of $2544.24
results in a long-term capital gain of $1901.75.

For your second sale of 50 shares, your cost basis is 50 multiplied by
$9.04917 or $452.46.  Subtracting this from your proceeds of $1545.01
results in a long-term capital gain of $1092.55.

Therefore, your total long-term capital gain is $2994.30.

Sincerely,

Wonko

Sources:

"On July 30, 1997 the company's Board of Directors approved a
two-for-one stock split in the form of a special stock dividend of one
share of common stock for each share of the company's common stock
outstanding. The record date for the transaction is August 15, 1997
and the closing date will be on or about August 29, 1997."

"Agouron Pharmaceuticals Reports Fourth Quarter and Fiscal 1997
Financial Results; Announces 2 For 1 Stock Split" PRNewswire (July 15,
1997) http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=105&STORY=/www/story/7-31-97/289088

"The transaction will be accounted for as a pooling of interests and
is intended to qualify as a tax-free exchange."

"Warner-Lambert to Acquire Agouron for $2.1 Billion in Stock; Two
Industry Leaders to Build Complementary Capabilities in Drug
Discovery" PRNewswire (January 26, 1999)
http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=105&STORY=/www/story/01-26-1999/0000854854

"The merger qualified as a tax-free reorganization and was accounted
for as a pooling of interests under APB No. 16, Business
Combinations."

"Annual Report 2001" Pfizer
http://www.pfizer.com/are/investors_reports/annual_2001/p2001ar45.html

I am very pleased with the answer to my question.  I was particularly
impressed that Sources were noted.  The Researcher also sent exact
figures that I had requested, not just instructions on how to come up
with them.  I am also pleased with the quick response to my question. 
With sincere thanks.