Question
During the current taxable period a timber supplier supplies timber for $1,150 (GST inclusive) to a manufacturer who uses the timber to build furniture. The
During the current taxable period a timber supplier supplies timber for $1,150 (GST inclusive) to a manufacturer who uses the timber to build furniture. The timber supplier made purchases and incurred expenses of $920 (GST inclusive) related to producing the supplies. The manufacturer sells the furniture to a retailer for $3,450 (GST inclusive). The retailer then sells the furniture to a consumer for $5750 (GST inclusive). The timber supplier, the manufacturer and the retailer are registered for GST but the consumer is not registered for GST. Assume that the timber supplier, manufacturer, and retailer use the invoice basis and all their supplies, purchases and expenses are based on tax invoices issued in the current taxable period.The total GST Output on the supplies made by the three supplies (i.e. supplies made by timber supplier, manufacturer and retailer) is:
Select one:
a.$1,350
b.$750
c.$600
d.$1,200
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