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I bought 100 shares of XYZ at $12.35 for a total cost of $1,235.

I then sold an $11.50 call for $1.15, collecting $115.

If assigned, will my sale price for the 100 shares be $1,150 realizing an $85 loss on the stock and a $115 gain on the short call? Or is the $115 in premium part of the sell price ($1,265) and I will actually realize a $30 gain?

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The $115 in premium is part of the sell price ($1265) and you have a $30 gain.

From page 58 of IRS publication 550:

If a call you write is exercised and you sell the underlying stock, increase your amount realized on the sale of the stock by the amount you received for the call when figuring your gain or loss. The gain or loss is long term or short term depending on your holding period of the stock.

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