For the year ending December 31, 2021, the income statement of Sloan Inc. is as follows (all

amounts are without the addition of the HST):

Revenues:

Sales of fully taxable goods $291,600

Provision of exempt services 105,300 $396,900

Less expenses:

Cost of goods sold ($166,050)

Amortization expense ( 75,600)

Salaries and wages ( 16,200)

Rent ( 56,700)

Interest expense ( 12,150)

Other expenses ( 36,450) ( 363,150)

Income before taxes $ 33,750

Less: Federal and provincial income tax ( 10,800)

Net accounting income $ 22,950

Other Information:

1. Sloan Inc. is a retail business located in Ontario where all of the companys revenues are

earned and expenses incurred. The HST rate in Ontario is 13%. The quick method rates are

4.4% for businesses that purchase goods for resale and 8.8% for service providers.

2. For the previous year ending December 31, 2020, Sloans cost of goods purchased for resale

totalled $148,500 and the revenue from sales of taxable supplies totalled $407,700. Both

amounts are before HST.

3. Purchases of taxable goods in 2021, before HST, cost $155,250.

4. All of the other expenses involved the acquisition of fully taxable supplies and were acquired

to assist in the provision of fully taxable supplies.

5. Of the salaries and wages, 52% were paid to employees involved in providing exempt ser-vices and 48% for fully taxable supplies.

6. A capital expenditure was made during the year at an HST-inclusive cost of $83,620. The

expenditure was for furniture and fxtures that will be used 60% for the provision of fully

taxable supplies. HST was paid on the acquisition of all depreciable property on which amor-tization is claimed.

Required: For the year ending December 31, 2021:

A. Determine if Sloan is eligible to use the quick method and the applicable quick method

remittance rate.

B. Calculate Sloan Inc.s HST payable or HST refund using regular HST calculations.

C. On the assumption that Sloan Inc. is eligible to use the quick method, calculate the HST

payable or HST refund using the quick method.