GST Complex issues:

Instructions: The following case study is related to complex tax issues. You are required to do detail research on ATO website complete this task. East Point Pty Ltd is registered for GST and carries on the business of property development. It purchased vacant land in 2004 for $100,000 and improved the property with roads and other services at a cost of $425,000, before entering into a contract to sell that land in April 2012 for $870,000. Settlement occurred in June 2012.

Required: Using the consideration method, calculate the margin and the GST applicable on the sale. Also, calculate East Point Pty Ltds gross profit.