A company makes the following acquisitions of ordinary shares in JKL plc: Date 1 July 1983 2

A company makes the following acquisitions of ordinary shares in JKL plc:

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Date 1 July 1983 2 August 1984 3 February 1997 4 June 2003 No of shares 5,000 2,000 1,200 1,800 Cost 6,300 2,500 2,300 3,400 RPI 85.30 89.94 155.0 181.3 The company sells 500 shares on 8 July 2017 (RPI 271.7). (a) Calculate the cost and indexed cost of the s104 holding on 8 July 2017, just prior to and just after the above disposal (RPI for April 1985 is 94.78). (b) Compute the chargeable gain or allowable loss on the disposal if sale proceeds are: (i) 2,000 (ii) 1,000 (iii) 700