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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Indexation allowance
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.
Thank you in advance.
I do not have the BPP kit but the main question here is have you studied chapter 19 of the OT notes and worked through the accompanying lectures??