1. HST (5 marks)

Your client (an individual) operates a service business as a sole proprietorship in Ontario. The HST rate is 13%. The remittance rate (for services using the quick method is 8.8%). She has provided you with the following information for 2020:

All amounts are excluding HST

Revenue excluding HST	$282,500
Current expenditures excluding HST	59,325
Capital expenditures excluding HST	16,950

Required: Calculate the amount of the taxpayers net HST remittance under the following two assumptions:

a) Taxpayer uses the regular method.

b) Taxpayer makes an election to use the quick method.

2. Child and Spousal Support (5 marks)

Richard and Mary-Ann are divorced. Richard has sole custody of the children. Under the terms of a written agreement, Mary-Ann is required to pay $400 per month in spousal support and $550 per month in child support.

Mary-Ann did not make all her support payments as required. She paid a total of only $8,000 to Richard for spousal and child support.

Required Determine the amount of spousal support that is taxable to Richard and deductible to Mary-Ann.