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| Mr Le Bon held 20,000 £1 shares in Duran plc out of a total number of issued shares of one million. They were bought in 2002 for £2 each. In 2012 the board of Duran plc agreed to a takeover bid by Spandau plc under which shareholders in Duran plc received three ordinary Spandau plc shares plus one preference share for every four shares held in Duran plc. Immediately following the takeover, the ordinary shares in Spandau plc were quoted at £5 each and the preferences shares at 90p. Required: Show the base costs of the ordinary shares and the preference shares. |