As a convenience, some brokers provide an average-cost basis calculation result for mutual fund shares sold.
If there was also a non-dividend distribution during the year (reduces basis on remaining shares), is it common for the broker to take that into account for the year-end calculation? Or would the basis number calculated by the brokerage be further reduced by the non-dividend distribution (1099-DIV box 3) allocated by number of shares owned at the time of distribution?
-Mark Bole