Question 4 (15 marks)

Part A) (10 marks)

Penfolds Fencing Pty Ltd, run by Penn Penfold, is a sheet metal fencing products manufacturing business, located in West Ryde, NSW. Penn wants your assistance filling in his September 2020 Quarterly Business Activity Statement (BAS). The following events occurred in the September 2020 BAS period:

1. Sale of fencing to Australian customers	$2,200,000
2. Sale of fencing to New Zealand customers	$1,700,000
3. Purchase of raw materials from Australia	($220,000)
4. Purchase of wire roll-form machine	($440,000) (see additional information)
5. Payment of wages	($500,500)

Additional information:

• When purchasing the new wire roll-form machine, Penfold Fencing traded in an old broken machine for $110,000. Whereby the price of the new machine was reduced on the tax invoice from $550,000 to $440,000. Your answer must include a discussion of how this affects the GST for Penfold?

Required: Calculate GST Payable/Refundable for Penfolds Fencing Pty Ltd for the 2020 September Quarterly BAS.