Information

Sales

$ $2,550,000$

Cost of Goods Sold

$ $1,100,000$

Depreciation expense

$ $250,000$

Salaries and wages

$ $310,000$

Capital expenditures

$ $200,000$ Lovett Ltd$.$ operates in Alberta $($a province that does not have PST or HST$)$ and sells only fully taxable and GST exempt supplies. Lovett Ltd$.$ reports the following amounts $($net of any GST collected or paid$)$ in its financial records for the current year:

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Among the sales, $\backslash (\backslash$$ $1,500,000\backslash )$ was fully taxable supplies and the remaining was GST$-$exempt supplies. Purchases of merchandise exceeded Cost of Goods Sold by $\backslash (\backslash$$ $70,000\backslash ),$ and all merchandise purchased and sold was fully taxable supplies. The purchase of furniture and fixtures used $60\backslash \%$ for fully taxable supplies and $40\backslash \%$ for GST$-$exempt supplies.

Which of the following is the correct amount of GST payable $($or refund$)$ for Lovett Ltd$.$ in the current year?

A$.\backslash (\backslash$$ $34,500\backslash )$ GST payable

B$.\backslash (\backslash$$ $6,500\backslash )$ GST payable

C$.\backslash (\backslash$$ $10,500\backslash )$ GST payable

D$.\backslash$$$59,000$ GST payable