A company makes the following acquisitions of ordinary shares in JKL plc: The company sells 500 shares

Question:

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

image text in transcribed

The company sells 500 shares on 8 July 2020.

(a) Calculate the cost and indexed cost of the s104 holding on 8 July 2020, just prior to and just after the above disposal. (RPI for April 1985 is 94.78 and RPI for December 2017 is 278.1).

(b) Compute the chargeable gain or allowable loss on the disposal if sale proceeds are:

(i) £2,800

(ii) £1,000

(iii) £700

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Taxation Finance Act 2020

ISBN: 9781292360713

26th Edition

Authors: Alan Melville

See More Books

Question Posted: Feb 11, 2024 02:00 AM

See More Questions

A company makes the following acquisitions of ordinary shares in JKL plc: 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...
Paula makes the following acquisitions of ordinary shares in Indigent plc: Date Number of shares 5,000 2,000 1,200 1,800 Cost 6,300 1 July 2010 2 August 2011 2,500 3 February 2014 2,300 4 January...
Paula makes the following acquisitions of ordinary shares in Indigent plc: She sells 500 shares on 28 March 2021. No shares are acquired within the next 30 days. (a) Show the s104 holding on 28 March...
A heating contractor must heat 0.2 kg/s of water from 15C to 35C using hot gases in cross flow over a thin-walled tube. Your assignment is to develop a series of design graphs that can be used to...
You are working on a Hardware Lab and you and another student have laptops plugged into 2 of the LAN switches. You configured your routers and switches from scripts that you got from me. The students...
In a totally inelastic collision between two objects in an isolated system with one of the objects initially at rest, is it possible to lose all of the system's initial kinetic energy?
Fashion Fabrics makes custom handbags and accessories for high-end clothing boutiques. Record summary journal entries for each of the following transactions that took place during the month of...
1. The first arbitrage opportunity relates to locational arbitrage. Holt has obtained spot rate quotations from two banks in Thailand: Minzu Bank and Sobat Bank both located in Bangkok. The bid and...
1.Which of the following is an advantage of implementing just-in-time inventory management? Pick 1 option The frequency of raw materials deliveries is reduced Monthly finance costs incurred in...
A company made the following acquisitions of ordinary shares in CDE plc: The shares had a market value of 1.80 per share on 31 March 1982 (RPI 79.44). The company made no further acquisitions and...
A company acquired a chargeable asset (not a chattel) in 1979. The asset was sold in December 2020 for 2,800. Compute the chargeable gain or allowable loss if the original cost of the asset and its...
Harrisburg Company, which began business in early 20X7, reported $40,000 of accounts receivable on the December 31, 20X7, balance sheet. Included in this amount was $550 for a sale made to Tom...
Compare Rigid and Affine Transformation. . Describe Fourier Transformation(U)
4.4 The window of a Geiger-Muller detector is made of mica and has a thickness of 0.02 kg/m (p= 2.6 10 kg/m). For mica composition, use NaAl-Si-O0(OH). a. What is the minimum electron energy that...
Wildhorse Company purchased merchandise inventory with an invoice price of $12400 and credit terms of 2/10, n/30. What is the net cost of the goods if Wildhorse Company pays within the discount...
The company founder hires us as consultants and asks that we oversee the accounting for new equipment purchased on January 1. The founder wants to know the implications of different depreciation...
An investor makes deposits twice a month into a fund paying interest at j4 = 6.5%. At the time of the 80th deposit, she wishes to have $100,000. What deposit is needed?
Can a judgment awarded to the victim of an intentional shooting be discharged under Chapter 13? Did LeMaire file his plan in good faith?
You've been asked to take over leadership of a group of paralegals that once had a reputation for being a tight-knit, supportive team, but you quickly figure out that this team is in danger of...
Mabel has total income of 26,205 in 2017-18, none of which is derived from savings or dividends. During the year she makes a net deductible payment of 200. Show her income tax computation for the...
In 2017-18, Owen (who is not a Scottish taxpayer) makes qualifying Gift Aid donations totalling 360. He has no capital gains tax liability for the year. Show his income tax computation if his only...
In 2017-18, a taxpayer who pays income tax at 45% and capital gains tax at 20 % gives listed shares with a market value of 20,000 to a charity. There are no incidental costs of disposal and the...
What is the goal of the NCCI? Group of answer choices To ensure claims are complete before paid To ensure correct coding and control inappropriate payments due to coding errors. To ensure Claims are...
Consider the relationship between Retained Earnings that is reported on the balance sheet and Net Income that is reported on the Income Statement and select the correct answer: Question 1 options:...
Consider the following mechanical system: X3 m1 = 2 kg m2 = 4 kg F k1 k k3 m3 = 3 kg m m12 m3 k = 3 N/m k = 2 N/m k3 = 1 N/m The goal of this assignment is to observe responses for different initial...

A company makes the following acquisitions of ordinary shares in JKL plc: The company sells 500 shares

Question:

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

Step by Step Answer:

a The cost and the indexed cost of the s104 holding on 8 July 2020 are calculated as follows No of s...View the full answer

Taxation Finance Act 2020

Students also viewed these Business questions