Patsy bought a chargeable asset in May 2010 for 350,000 paying acquisition costs of 15,000. In May 2016 she sold a one-quarter interest in the asset for 125,000, incurring disposal costs of 7,000. The remaining three-quarters interest in the asset was valued at 600,000 in May 2016.

Patsy sold the remaining three-quarters interest in the asset for 630,000 in May 2019.

Patsy acquired the following ordinary shares in Abfab plc:

DateNo. of sharesCost

19 September 20114,00016,000

20 October 20132,00012,000

21 November 20151,0007,000

22 December 20193,00024,000

13 January 20205,00055,000

Patsy made no further acquisitions during 2020. On 22 December 2019 she sold 10,000 shares in Abfab plc for 10 per share.

Required:

a)Compute the chargeable gain arising on the chargeable asset in May 2016.

b)Compute the chargeable gain arising on the chargeable asset in May 2019.

c)Compute the chargeable gain or allowable loss arising on the disposal of Abfab plc shares.