ABC Ltd. is a retail business located in British Columbia. The GST rate in this Province is 5 percent. When the Quick Method is used in B.C., the remittance rate is 1.8 percent for a retail business and 3.6 percent for a service provider. All of the Company’s revenues and expenses are incurred in British Columbia. The Company has no associated business and files its GST return on an annual basis. For the current year, its Income Statement is as follows (all amounts are without the inclusion of applicable GST): Revenues: Sales Of Fully Taxable Goods $133,000 Provision Of Exempt Services 38,000 $171,000 Less Expenses: Cost Of Goods Sold ($ 53,000) Amortization Expense ( 5,000) Salaries And Wages ( 8,000) Rent ( 24,000) Other Operating Expenses ( 12,000) ( 102,000) Income Before Taxes $ 69,000 Less: Federal And Provincial Income Taxes ( 18,000) Net Income $ 51,000 Other Information: 

1. Inventories of taxable goods decreased by $4,000 during the year 

2. Of the Other Operating Expenses, 85% were related to the provision of fully taxable supplies. 

3. Of the Salaries And Wages, 22 percent were paid to employees involved in providing exempt services. 

4. A capital expenditure was made during the year at a cost of $32,000 (before GST). The expenditure was for equipment that will be used 65 percent for the provision of fully taxable goods. 

Required: 

A. Calculate the net GST payable or refund that ABC Ltd. will remit or receive for the current year using regular GST calculations. 

B. Assume that ABC Ltd. is eligible to use the Quick Method at the 1.8 percent rate. Calculate the net GST payable or refund that ABC Ltd. will remit or receive for the current year using the Quick Method.n

Answer rating: 100% (QA)

A Net GST payable or refund using regular GST calculations Sales of fully taxable goods 133000 x 5 6... View the full answer