Question
Abram Co of B.C. sells bearings (unfinished) to Braeburn Ltd a manufacturer of refined bearings. The price per bearing is $100. Braeburn sells its bearings
Abram Co of B.C. sells bearings (unfinished) to Braeburn Ltd a manufacturer of refined bearings. The price per bearing is $100. Braeburn sells its bearings to Charm Inc., a wholesaler. Charm in turn sells the bearings to distributor Dartmouth Co. Dartmouth Co. then sells to Retail Inc. Retail Inc. sells the product to consumer Eddie Binden.
All businesses apply a 10% mark up on their costs to arrive at the selling price and all these transactions took place in Alberta.
Complete the table below and compute the numbers that correspond to A,B,C,D, E, F,G,H,I,J,K,L and M,N,O,P and Q.
Company | Cost | ITC | Sale Price | GST/HST | SP Plus GST | Net Tax Remitted |
Abram | - | - | 100.00 | 5.00 | 105.00 | 5.00 |
Braeburn |
| A (2 marks) | E(2 marks) | I (2 marks) |
| M(1 mark) |
Charm |
| B (2 marks) | F(2 marks) | J(2 marks) |
| N(1 mark) |
Dartmouth |
| C (2 marks) | G(2 marks) | K(2 marks) |
| O(1 mark) |
Retail Inc. |
|
D (2marks) |
H(2 marks) |
L(2 marks) |
|
P(1 mark) |
Eddie Binden |
| XXXXXXX | XXXXX | XXXXXXX | Total Tax Remitted | Q (2 marks)
|
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