G sold 1000 shares of Need Ltd for 9000 early in the current

G sold 1,000 shares of Need Ltd. for $9,000 early in the current year. The adjusted cost base of the 1,000 shares sold was $30,000. Two weeks later, the value of Need Ltd. started rising and G purchased 800 shares which he still owns at the end of the year. What is the amount of the allowable capital loss?

Solution

Answer:

Given,

Sale consideration - $9000

Less:Cost base adjustment(1000 shares) - $30,000

Less booked 1000 shares@21 =(30,000-9000)

= $21,000

Two weeks later within a period of time i.e., 30 days n sale,

G has purchased 800 shares

Loss can be given as $21*800=$16,800 is added to cost of the new share

Allowable loss= $21*200 shares

=$ 4200