The following information relates to Questions 5 to 9

Sonny and Charlie operatea bed mattress sales business called Sleeping Rooster.

The business delivers state of the art orthopaedic bed mattresses straight to their customers' homes

and offers a great customer satisfaction return policy.

Sonny and Charlie come to you with the businesses 2021/22 information and ask for your GST

advice.

Note: Your answer must be supported by reference to relevant GST legislation, case law and tax rulings (if

any).

All amounts include GST where applicable.

Question 1

Sleeping rooster generated income for local mattress sales of $320,000. What are the GST implications?

Question 2

Sleeping Rooster imported cardboard packaging from China which is easy to assemble and allows for

a compact delivery of their mattresses totalling $59,000.

What are the GST implications?

Question 3

Wages totalling $50,000 are paid to Sleeping Rooster's employees located in Australia.

What are the GST implications?

Question 4

What are the GST implications of the purchase of a delivery van for $200,000.

It will be used to deliver the mattresses which has an expected life of 5 years.

Question 5

Based on your answers to Questions to the above, calculate Sleeping Roosters total GST

payable/refundable.