XYZ Inc is a Canadian Controlled private corporation. The company$$s controller has

prepared an income statement for the year for the company $($the amounts shown do not

include any applicable HST$)$:

XYZ Inc.

Income Statement

For the Year Ended December $31$st$,2023$

Revenue:

Sales $$900,000$

Other revenue $$29,000$

Expenses:

Cost of sales $$430,000$

Salaries and wages $$220,000$

Amortization $$14,000$

Legal and accounting $$10,000$

Insurance $$20,000$

Lease on commercial building $$50,000$

Golf green fees $$9,000$

Meals and entertainment $$8,000$

Net income before taxes $$168,000$

Additional information $($amounts exclude any applicable HST$)$:

$$ The depreciable assets currently on the balance sheet include a van, furniture and

fixtures, and small tools. The undepreciated capital cost $($UCC$)$ balances at the end of

the previous taxation year were $$15,000($Class$10\mathrm{.}1),$ $$8,000($Class $8)$ and $$0($Class

$12).$

$$ During $2023,$ new furniture and fixtures were acquired for $$32,000.$ Old fixtures originally

costing $$15,000$ were sold off for proceeds of $$2,000.$ Small tools with an aggregate

cost of $$4,500$ were sold off for proceeds of $$1,000.$ For accounting purposes, the net

book values of the fixtures and small tools matched the sale proceeds, so there is no

gain or loss recognized in the income statement.

$$ Other revenue consisted of interest on bonds $($$$6,000),$ gain on the sale of short$-$term

marketable securities $($$$20,000),$ and eligible dividends $($$$3,000).$

$$ All of the expenses were incurred to earn the sales revenue.

$$ XYZ is registered for HST and carries on commercial activity. XYZ operates in Ontario

where the HST rate is $13\%.$ XYZ is an annual filer and uses the general method for

determining its HST remittances.

Required

$1)$ Determine XYZ$$s net income for tax purposes for $2023.$

$2)$ Determine XYZ$$s HST remittance or refund for $2023.$

You must show all your work and provide a brief explanation for anything you$$ve

intentionally omitted from the calculations. No marks will be given for unexplained

omissions.