On 15 October 2017, Desmond bought 5 000 shares in Red Ltd at a cost of R5 per share. On 25 October 2018, Red Ltd was taken over by Blue plc. The shareholders of Red Ltd received 3 shares in Blue plc for every 2 shares in Red Ltd. On 25 October 2017 shares in Blue plc were valued at R3.50 each. How many shares does Desmond's hold in Blue plc at 25 October 2017 and how much did they cost?

On 25 February 2018, Jane bought 2 500 ordinary shares in XYZ Ltd at a cost of R8 125. At that time, the company made a 1 for 25 rights issue at R2.50 per share and Jane decided to buy the shares to which she was entitled. The new base cost per share, for capital gains tax purposes, of Jane's shareholding after the rights issue is closest to?

On 31 July 2018, Sipho bought 1 000 ordinary shares in ABC Ltd at a cost of R2 750. On 31 December 2018 the company made a 1 for 10 bonus issue. On 31 March 2019, Sipho sold 300 shares for R800. The chargeable gain or allowable loss arising on the disposal is?

On 31 July 2018, Sipho bought 1 000 ordinary shares in ABC Ltd at a cost of R2 750. On 31 December 2018 the company made a 1 for 10 bonus issue. On 31 March 2019, Sipho sold 300 shares for R800. What is the new base cost of Sipho's holding?

On 25 February 2018, Jane bought 2 500 ordinary shares in XYZ Ltd at a cost of R8 125. At that time, the company made a 1 for 25 rights issue at R2.50 per share and Jane decided to buy the shares to which she was entitled. What is the cost of the nil paid rights is?

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1 Desmond originally bought 5000 shares in Red Ltd for R5 per share for a total cost of R25000 After the takeover by Blue plc Desmond received 3 share... View the full answer