On 10 November 2021, Circle plc was taken over by Square plc. Shareholders in Circle plc received three £1 ordinary shares in Square pic for every two £1 ordinary shares in Circle plc. Immediately after the takeover, Square plc's £1 ordinary shares were quoted at £5. Identify, by clicking on the relevant boxes in the table, the total number and base cost of Maria's holding of £1 ordinary shares in Square plc immediately after the takeover for cas gains tax purposes. Number of shares 9,000 4,000 6,000 18,000 Base cost after takeover £20,000 £36,000 £45,000 £54,000

On 10 November 2021, Circle plc was taken over by Square plc. Shareholders in Circle plc received three £1 ordinary shares in Square pic for every two £1 ordinary shares in Circle plc. Immediately after the takeover, Square plc's £1 ordinary shares were quoted at £5. Identify, by clicking on the relevant boxes in the table, the total number and base cost of Maria's holding of £1 ordinary shares in Square plc immediately after the takeover for cas gains tax purposes. Number of shares 9,000 4,000 6,000 18,000 Base cost after takeover £20,000 £36,000 £45,000 £54,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

On 15 July 2013, Maria purchased 6,000 £1 ordinary shares in Circle plc for £6 per share.
On 10 November 2021, Circle plc was taken over by Square plc. Shareholders in Circle plc received three £1 ordinary shares in Square plc for every two £1 ordinary shares in Circle pic.
Immediately after the takeover, Square plc's £1 ordinary shares were quoted at £5.
Identify, by clicking on the relevant boxes in the table, the total number and base cost of Maria's holding of £1 ordinary shares in Square plc immediately after the takeover for capital
gains tax purposes.
Number of shares
9,000
4,000
6,000
18,000
Base cost after takeover
£20,000
£36,000
£45,000
£54,000

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