Bessie operates a small business that is registered for GST on a cash basis each quarter. She purchased a car costing $44,000 on 2 December 2020 that will be used 60% for business and 40% for private purposes. Bessie paid a cash deposit of $4,400 at the time of purchase and will pay the remaining $39,600 in January 2021. Based on the above information which one of the following amounts represents the input tax credits Bessie is entitled to for the December 2020 quarter, assuming a valid tax invoice is held? a. Nil. b. $4,000. c. $400. d. $44,000. e. $240.

Answer rating: 100% (QA)

ANSWER C is the correct answer 400 Input tax credit is the credit manufact... View the full answer