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Please show the steps to get the answer of $(80,575). Lethbridge Ltd., a company incorporated in Alberta, is an annual filer for GST purposes. Alberta
Please show the steps to get the answer of $(80,575).
Lethbridge Ltd., a company incorporated in Alberta, is an annual filer for GST purposes. Alberta does not participate in the HST and does not have a provincial sales tax. View the financial statement information. Required Calculate Lethbridge's GST payable or GST refund for the current year. Determine Lethbridge's GST payable (GST refund) for the current year. (Use parentheses or a minus sign for a negative value.) What is Lethbridge's GST payable (GST refund) for the current year? Financial statement Other Information 1. Sales included $1,230,000 in exempt supplies, $2,350,000 in zero-rated supplies, and $2,110,000 in fully taxable supplies. 2. None of the cost of goods sold are attributable to exempt supplies. Purchases of inventory totalled $2,320,000. GST was paid on all purchased goods. 3. Two capital expenditures were made in the current year. The first was a building purchased for $3,020,000, and the second for equipment purchased for $1,000,000. Fully taxable and zero-rated supplies account for 35% of the use of the building, and 65% is attributable to exempt supplies. Fully taxable and zero-rated supplies account for 40% of the use of the equipment, and 60% is attributable to exempt supplies. GST was paid on the purchase of the building and the equipment. All the depreciation expense relates to these two capital expenditures. 4. The "other expenses" are all attributable to fully taxable supplies. $43,000 of the other expenses are for meals of employees while travelling for business purposes. Only 50% of these expenses are deductible for income tax purposes (ITA 67.1). 5. Of the salaries and wages, 35% are attributable to exempt suppliesStep by Step Solution
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