Part A HST: Answer Part A and Part B

HST: Furniture T Us (Furniture) Inc., located in Calgary, Alberta, sells office furniture to local businesses in Alberta. Furnitures sales have never been more than $400,000 annually. Furniture has chosen to file its GST returns on a quarterly basis. The following information relates to the first quarter (January to March 2022):

	Excluding GST
Sales	$72,000
Cost of Goods Sold	21,250
Actual Inventory purchases in the quarter	17,250
Salaries	10,000
Interest on loan	900
Capital expenditure	3,400

Required:

Determine the GST owing (or refundable) for the first quarter of 2022, using the QUICK method. As this is an Alberta province the appropriate % is 4.4% (for resale type companies).

Determine the GST owing (or refundable) for the first quarter of 2022, using the REGULAR method.

Part B Child and Spousal Support: Answer Part A and Part B

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 $8,200 to Richard for spousal and child support.

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