Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

the correct answer is 91025 gst refund. I just need to know how to get it. Any other answer is wrong according to the assignment.

the correct answer is 91025 gst refund. I just need to know how to get it. Any other answer is wrong according to the assignment. Please help, I'm desperate

image text in transcribed

Lindenhurst L4d., a borrpany incorponated in Aberta, is an annual fler for GST purposas. Aberta doss not particpate in the HST and does not here a prowincisl sales tax. Required Calculate Lindenhurst's GST peyable or GST refund for the current yeer. Delermine Lindenhurst's GST payable (GST refund) for the current year. (Use parentheses or a minus sign for a negative value.) What is Lindenhurst's GST payable (GST refund) for the current year? The following is a summary of the financial statement information for the current sear Ninne of the amnuinte ehruan inrlusle R 1. Sales included $1,220,000 in exempt supplies, $2,410,000 in zero-rated supplies, and $2,130,000 in fully taxable supplies. 2. None of the cost of goods sold are attributable to exempt supplies. Purchases of inventory totalled $2,420,000. GST was paid on all purchased goods. 3. Two capital expenditures were made in the current year. The first was a building purchased for $2,970,000, and the second for equipment purchased for $960,000. Fully taxable and zero-rated supplies account for 40% of the use of the building, and 60% is attributable to exempt supplies. Fully taxable and zero-rated supplies account for 35% of the use of the equipment, and 65% 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. $35,000 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, 40% are attributable to exempt supplies

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Financial Accounting

Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker

10th edition

78025621, 978-0078025624

Students also viewed these Accounting questions