Courtney operates a souvenir gift shop in Ontario. Her business is registered for the Quick Method of calculating ITCs. Her HST$-$taxable sales were $$185,000$ for the year. HST$-$taxable purchases of goods for resale were $47\%$ of sales. In addition, Courtney paid $$48,000$ in purchases and expenses, which included $$42,000$ for salaries and insurance.

a$.$ Calculate how much HST Courtney remitted to the CRA when using the Quick Method.

b$.$ If she had not chosen to use the Quick Method of calculating ITCs, how much HST would she have to remit?

c$.$ What is the difference in remittances under the two methods?

Answer rating: 100% (QA)

Step1 Courtneys HST Remittance Calculations Given Information HST rate assumed to be Ontarios rate 13 HSTtaxable sales 185000 HSTtaxable purchases 47 ... View the full answer