Placements Tate Inc. purchased on October 1, 2013 a used building for $1,600,000. The building was...

Transcribed Image Text:

Placements Tate Inc. purchased on October 1, 2013 a used building for $1,600,000. The building was immediately leased for the following amounts of rents (rents for Oct1-Dec.31/13 excluding sales taxes): Retail stores Bank branch Medical offices Residential apartments $ 80,000 30,000 Payments made for specific tenants: 40,000 50,000 The following were t payments made for Oct.1-Dec.31/13 (excluding any PST or GST): Payments made for expenditures for the entire building: Accounting fees Electricity Mortgage interest Insurance Repairs Purchase of truck Montreal real estate taxes Equipment for the residential apartments Repairs for retail stores Entertainment to attract commercial tenants Advertising for new residential tenants $ 2,000 12,000 24,000 4,500 3,200 32,000 9,000 $ 6,000 9,400 800 1,000 Purchase of a $40,000 car for the janitor who will use it 45% of the times for activities related to the residential apartments and the balance of time for all other sales. Required: In a point form schedule, calculate the GST payable or refund for the period October 1 to December 31 2013. Show all your calculations. Note all items that had no impact in calculating the GST payable or refund. Placements Tate Inc. purchased on October 1, 2013 a used building for $1,600,000. The building was immediately leased for the following amounts of rents (rents for Oct1-Dec.31/13 excluding sales taxes): Retail stores Bank branch Medical offices Residential apartments $ 80,000 30,000 Payments made for specific tenants: 40,000 50,000 The following were t payments made for Oct.1-Dec.31/13 (excluding any PST or GST): Payments made for expenditures for the entire building: Accounting fees Electricity Mortgage interest Insurance Repairs Purchase of truck Montreal real estate taxes Equipment for the residential apartments Repairs for retail stores Entertainment to attract commercial tenants Advertising for new residential tenants $ 2,000 12,000 24,000 4,500 3,200 32,000 9,000 $ 6,000 9,400 800 1,000 Purchase of a $40,000 car for the janitor who will use it 45% of the times for activities related to the residential apartments and the balance of time for all other sales. Required: In a point form schedule, calculate the GST payable or refund for the period October 1 to December 31 2013. Show all your calculations. Note all items that had no impact in calculating the GST payable or refund.

Answer rating: 100% (QA)

To calculate the GST payable or refund we need to determine the total input tax credits ITCs and the ... View the full answer