*20.10 Susan made the following purchases of ordinary shares in Semicycle pic; Date No ofshares Cost ...
Question:
*20.10 Susan made the following purchases of ordinary shares in Semicycle pic;
Date No ofshares Cost
£
11 January 2007 1,500 4,800 20 January 2014 1,140 5,700 In January 2017, the company went into liquidation and Susan received a first distribution of £2 per share. The market value of an ordinary share in Semicycle pic just after this distribution was £1. Compute the allowable loss arising in January 2017.
*20.11 On 9 May 2007, Steven bought 2,000 ordinary shares in Vexacon pic for £8,000. On 28 November 2012, he bought 500 ordinary shares in the company for £2,500.
In February 2017, Dantac pic made a takeover bid for Vexacon pic. The shareholders of Vexacon were offered two shares in Dantac plus £2 in cash for every Vexacon share.
This offer was accepted on 21 February 2017 when the market value of shares in Dantac pic was £4 per share. Compute Steven's chargeable gain or allowable loss.
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