Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

John and Peter are siblings. Each of them runs a separate unincorporated business. All of the businesses operate in Ontario where the HST rate is

John and Peter are siblings. Each of them runs a separate unincorporated business. All of the businesses operate in Ontario where the HST rate is 13 percent. If the Quick Method is used in that province, the Ontario quick method remittance rate is 4.4 percent for a retail business and 8.8 percent for a service provider. The siblings provide you with the following annual information for their businesses. All amounts are reported inclusive of HST. None of the sales or purchases were zero-rated or exempt, and none of the businesses made any capital expenditures during the year. Type of Business Sales Purchases John Guided Fishing Trips $ 90,400 $ 24,860 Peter Fishing Equipment Sales 197,750 135,600 Required: Recommend whether any of the businesses should use the Quick Method to calculate net HST remittances. Show your calculations

Step by Step Solution

3.40 Rating (156 Votes )

There are 3 Steps involved in it

Step: 1

Answer Both the business should use quick method to calculate net HST Remittance si... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Financial Management

Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao

13th edition

1285198840, 978-1285198842

More Books

Students also viewed these Accounting questions

Question

Prove Equation (3.5.3).

Answered: 1 week ago