Maybe im dumb, but in your example doesnt that mean your avg price is 0.7 with a capital gain of 1.3 for each share times 10000.
you still hold a 25000 shares afterwards with 0.7 avg price as you did not mentioned any purchase
That is the basic concept, however i dont know whether you are allowed to use FIFO method or not. Assuming you are not, everytime u make a purchase, you need to adjust your new average price.
example:
you buy 10 share at 1 dollar and another 10 share at 2 dollar. This means your average price is 1.5 dollar ( 20 shares for 30 dollar worth)
i am no accountant though but thats how you calculate average price in general unless i misunderstood you entirely
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