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f) Wellington Co., an Ontario-based company has sales of taxable supplies and is registered for HST. It has provided the following information for the
f) Wellington Co., an Ontario-based company has sales of taxable supplies and is registered for HST. It has provided the following information for the year (all amounts are shown before HST). Note Revenue 600,000 Operating expenses Advertising and promotion 50,000 1 Bank charges and interest 1,000 Depreciation 38,000 2 Interest on long-term debt 14,000 Office 113,000 3 Salaries and benefits 201,000 417,000 Operating income 183,000 Notes 1) Advertising and promotion includes $6,000 of golf memberships. 2) Depreciation is being calculated on the following assets: Building: annual depreciation = $20,000 Equipment (including $10,000 purchased this year): annual depreciation = $18,000 3) The office expense includes $40,000 of purchases that are either HST exempt or zero-rated. Calculate Wellington Co's HST payable based on the above activity. (5 marks) (~10 minutes)
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