Question: Underwater World Ltd., is located in Alberta. Alberta does not participate in the HST program and does not have a provincial sales tax. Among the

Underwater World Ltd., is located in Alberta. Alberta does not participate in the HST program and does not have a provincial sales tax. Among the purchases Underwater World Ltd. made during December were the following items:

Item Price Before GST

New motor for Dinghy #1 $7,000

New snorkeling equipment (for charter trips) 400

Water ski club membership fee (for the president) 700

Membership to Waterways Ltd. 500

Waterways Ltd. carries supplies for charter boat operators and requires the payment of a membership to use their services. The input tax credits that Underwater World Ltd. can claim for the above items for December are:

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!