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It is Canadian Income Tax, all information approved Montagne Inc. is located in Ontario and carries on all of its business in that province. The
It is Canadian Income Tax, all information approved
Montagne Inc. is located in Ontario and carries on all of its business in that province. The HST rate in that province is 13 percent. The Income Statement of Montagne Inc. for the current fiscal year ending December 31 is as follows (applicable HST has been excluded from all amounts): Sales And Other Revenues $823,000 Less Expenses Cost Of Goods Sold (5478,000) Amortization Expense ( 132,000) Salaries And Wages ( 57,000) Interest Expense ( 16,000) Other Operating Expenses 32.000 (715.000) Income Before Taxes $108,000 Less: Federal And Provincial Income Taxes (23,000) Net Income $ 85.000 Montagne is an annual filer for HST purposes. Other Information: 1. Sales And Other Revenues included $120,000 in exempt supplies and $116,000 in zero-rated supplies. The remaining sales were fully taxable for HST purposes. 2. All of the goods sold involved the provision of either fully taxable or zero-rated supplies. During the year, inventories of these goods decreased by $74,000. HST was paid on all goods that were purchased for resale during the year. 3. Capital expenditures for the year amounted to $1,200,000 before HST. HST was paid on all amounts of this total, $800,000 was for an office building that will be used 85 percent for the provision of fully taxable or zero-rated supplies. The remaining $400,000 was for equipment that will be used 27 percent in the provision of exempt supplies. HST was paid on the acnileitinn nf all accete nn which amortization le helmetalen during the varStep by Step Solution
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