- 5 Marks
PT – Dec 2023 – L2 – Q5c – Taxation of Capital Gains
Calculation of capital gain on the realization of shares and the tax payable.
Question
Yaa Baby acquired shares in Adom Ltd as follows:
| Date | Transaction | No. of shares | Share price | Value (GH¢) |
|---|---|---|---|---|
| 01/02/19 | Bought 1,000 shares | 1,000 | 2.00 | 2,000 |
| 01/03/19 | Bought 1,500 shares | 1,500 | 2.50 | 3,750 |
| 01/06/20 | Bought 2,000 shares | 2,000 | 3.00 | 6,000 |
| 01/04/21 | Bought 1,750 shares | 1,750 | 4.00 | 7,000 |
| 01/12/21 | Received rights issue (1 share for every 10 shares) | 625 | 1.50 | 937.50 |
| 31/12/21 | Sold 3,800 shares | 6.00 | 22,800 |
Required:
Compute the capital gain on the realization and the tax payable. (5 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Capital gains tax, Income Tax Act, Share Sale, Tax computation, Tax law
- Level: Level 2
- Topic: Taxation of Capital Gains
- Series: DEC 2023
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