How do you work out the cost figure on the disposal of shares if there is indexation?
The company held 16,000 for a cost of £32,000 and disposed of 10,000 shares for proceeds of £26,000 but in the answer the cost is £24,808 which is obviously calculated somehow with indexation allowance. Could you please help me figure out how to get to this figure? Indexation factors are: 0.244 or 0.283. Practise Question on Practise and revision kit on BPP book 2019/20 if this helps.