BTC June 2004

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:09AM in AAT student discussion
Can anyone tell me how do I arrive at the figure of £52,121On section 2 of the above paper. This is for the cost of shares. I know you have to allocate accordingly. them but am unsure on this question. <BR>Thanks in advance.<BR>

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    BTC June 2004

    <br><br><< <i>Can anyone tell me how do I arrive at the figure of £52,121On section 2 of the above paper. This is for the cost of shares. I know you have to allocate accordingly. them but am unsure on this question.</i> >><br><br><BR><BR>The method in the answer sheet is: 4000 sold divided by 5280 in the pool, multiplied by 68800 unindexed cost, gives 52121. They then subtract that from the proceeds of 120000 to give 67879, then subtract the accrued indexation allowance, to give the gain as 42021.<BR><BR>Actually, I would just take 4000/5280 times the indexed cost of 102932 which gives 77979. take that from the proceeds of 120000 to get the gain of 42021. Much simpler!<BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    BTC June 2004

    Cheers for that. You have also answered a question I was going to ask next (Where did the £77,979 come from)<BR>

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