1. During a taxation period, Darcy Wholesalers purchased merchandise for $226000. Merchandise sales during this period totaled $413000 and the cost of the merchandise sold was 260000. Ignoring all other costs incurred by Darcy and assuming a rate of 5 percent, how much tax would be paid by Darcy under an invoice-credit VAT system (net tax owing)?
2. John's Tees sells only fully taxable t-shirts to customers in Ontario where the HST rate is 13%. In Ontario, the Quick Rate for businesses that purchase goods for resale is 4.4%. During the first quarter of the year, John's Tees has sales of $60000, before HST. Current expenses, all of which were subject to HST, total $48000 (before HST). Due to a major renovation of the store, John's Tees has capital expenditures of $2900 (before HST). Using the Quick Method, determine the HST that is payable for the quarter.
3. Ricky's Hardware sells only fully taxable supplies to customers in Alberta which does not participate in the HST program and has no provincial sales tax. The quick method rate in Alberta for businesses that purchase goods for resale is 1.8%. During the first quarter of the year, the business has sales of $52000, before the inclusion of GST. They have taxable purchases totaling $20500 before GST. They do not make any capital expenditures during the quarter. Using the Quick Method, determine the GST that is payable for the quarter.