Remington Sports is a retail business situated in Ontario. All of its revenues occur and expenses are incurred in that province. It has no associated business and files its GST return on an annual basis. Ontario a 13 percent HST Remington's Income Statement for the current year is as follows all amounts are shown before applicable HST amounts):

Revenues : Fully Taxable Goods $ 265,000 Exempt Services 73,000

Less Expenses : Cost Of Goods Sold ( All Taxable ) ($ 140,000 ) Amortization Expense ( 23,000 ) Salaries And Wages ( 300) Rent 18,000 ) Interest Expense ( 50,000 ) Other Operating Expenses (21, 000)

Income Before Taxes $ 69,000

Less : Federal And Provincial Income Taxes ( 14,000 )

Net Income $ 55,000

Other Information :

1. Inventories of taxable goods increased by $13,000 during the year

2.A capital expenditure was made during the year at an HST inclusive cost of . The expenditure was for equipment that will be used 60 percent for the provision of fully taxable goods was paid or the acquisition of all assets on which amortization is being taken during this period.

3. All of the Other Operating Expenses involved the acquisition of fully taxable supplies and were acquired to assist in the provision of fully taxable supplies.

4. The rent was not subject to HST as it was paid to a non- registrant The proportion of the leased property that used for the provision of exempt services is 20 percent

5. the Salaries And Wages , 40 percent were paid to employees involved in providing exempt services

Required:

A Calculate the net payable or refund that Remington Sports will remit or for the current year using regular GST calculations

B. Calculate the net payable or refund that Remington Sports will remit or receive for the current year using the Simplified Input Tax Credit Method

C.. Prepare a memo to the store owner , outlining your findings