With respect to zero-rated supplies, the ________.

Question 38 options:

	GST rate is zero, but the applicable HST rate applies
	GST and HST rate are both zero
	HST rate is zero, but the GST rate applies
	GST and PST rate are both zero

In order to be considered a taxable supply, a good must ________.

Question 39 options:

	be made in the course of commercial activity
	be made in Canada
	be a new good, the resale of used goods are not considered taxable supplies
	be made with the intent to be used by an individual purchaser

All of the operations of June Ltd. are located in Ontario where the relevant HST rate is 13 percent. During the current quarter, June Ltd. has taxable sales of $1304000 before HST. Its cost of sales for the period was $842000 before HST and its merchandise inventories increased by 103000, again before HST. Salaries and wages for the period totaled $74000, interest expense was $13000, and amortization expense was $83000. No capital expenditures were made during the period.