Ltd. carries on a retail business located in Ontario. The HST rate is 13%. The remittance rate is 4.4% for a retail business and 8.8% for a service business. All of the company's revenues and expenses are incurred in Ontario. There are no associated persons, and the company files its HST return on an annual basis.

1.	Purchases of inventory in the year totalled $64,000.
2.	The "other expenses" are all attributable to fully taxable supplies of the salaries and wages 26% are attributable to exempt services. The remaining 74% is attributable to taxable supplies.
3.	The company purchased equipment at a cost of $36,080 which includes HST. It is estimated that 55% of the use of the equipment is attributable to taxable supplies and 45% to exempt services. The depreciation expense relates solely to the equipment.

1) Calculate Ltd net HST payable or HST refund for the current year using the regular HST method.

2) Determine whether LTD is eligible to use the quick method.

3) On the assumption that LTD is eligible to use the quick method at a remittance rate of 4.4%, calculate the HST payable or HST refund for the current year using the quick method.

$ 108,000 44,000 $ 152,000 Revenues: Sales of fully taxable goods Provision of exempt services Total revenues Less expenses: Cost of goods sold Depreciation expense Salaries and wages expense Rent expense Interest expense Other expenses Total expenses Accounting Income before taxes Less: Federal and Provincial income taxes Net Accounting income $ (59,000) (8,600) (7,800) (28,000) (3,600) (11,800) (118,800) $ 33,200 (6,600) $ 26,600