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Part $1$

Lucasville $$Ltd$.,$ a company incorporated in$$ Alberta, is an annual filer for GST purposes. Alberta does not participate in the HST and does not have a provincial sales tax.

Financial statement

Below is a summary of the financial statement information for the current fiscal year. None of the amounts shown include GST$.$

Sales

$$5,720,000$

Less Expenses:

Cost of goods sold

$$(2,620,000)$

Depreciation expense

$(720,000)$

Salaries and wages expense

$(640,000)$

Interest expense

$(118,000)$

Other expenses

$(376,000)$

Income tax

$(240,000)$

Total expenses

$(4,714,000)$

Income for accounting purposes

$$1,006,000$

Other Information

$1.$

Sales included $ $1$ comma $180$ comma $000$ in exempt$$ supplies, $ $2$ comma $450$ comma $000$ in$$ zero$-$rated supplies, and $ $2$ comma $090$ comma $000$ in fully taxable supplies.

$2.$

None of the cost of goods sold are attributable to providing exempt supplies. Purchases of inventory totalled $ $2$ comma $320$ comma $000.$ GST was paid on all purchased goods.

$3.$

Two capital expenditures were made in the current fiscal year. The first was a building purchased for $ $2$ comma $980$ comma $000$ and the second for equipment purchased for $ $1$ comma $030$ comma $000.$ The provision of fully taxable and$$ zero$-$rated supplies account for $40\%$ of the use of the$$ building, and $60\%$ is attributable to providing exempt supplies. The provision of fully taxable and$$ zero$-$rated supplies account for $25\%$ of the use of the$$ equipment, and $75\%$ is attributable to providing exempt supplies. GST was paid on the purchase of the building and the equipment. All the depreciation expense relates to these two capital expenditures.

$4.$

The$$ "other expenses" are all attributable to fully taxable supplies. Totalling $ $36$ comma $000$ is an$$ "other expenses" for meals of employees while travelling for business purposes. Only $50\%$ of these expenses are deductible for income tax purposes$($ITA $67\mathrm{.}1).$

$5.$

Of the salaries and$$ wages, $30\%$ are attributable to providing exempt supplies.

Work on finding Lucasville$\text{'}$s GST payable$($GST refund$)$ for the current year. In this$$ step, calculate the GST tax credit for other expenses.

Other expenses

Meals of employees

Percentage that is deductible

Deduction for meals of employees

Other expenses for GST tax credit

GST rate

GST tax credit for other expenses

Part $2$

$$Next$,$ calculate the tax credit of the building.

Cost, building

$\backslash$times

Percentage of fully taxable and zero$-$rated supplies, building

$\backslash$times

GST rate

$=$

GST tax credit, building

$\backslash$times

$\backslash$times

$=$

Part $3$

$$Now$,$ calculate Lucasville$\text{'}$s GST payable$($GST refund$)$ for the current year. $($For entries with a$$ $$0$ balance, make sure to enter$"0"$ in the appropriate column. Use parentheses or a minus sign for a negative$$ value.$)$

GST collected

Input tax credits:

Purchases

Amortization expense

Salaries and wages

Interest expense

Other expenses

Income tax

Building

Equipment

Total input tax credits

GST payable $($refund$)$