Reference no: EM132960688

Other Operating Expenses includes $28,000 for a corporate golf club membership, for life insurance premiums on the lives of company executives, and $63, for meals and enter tainment. Assume that all of the remaining expenses are business related and that the company has estimated that all of the expenses in this category can be broken down as 68 percent for the provision of fully taxable supplies and 17 percent for the provision of zero-rated supplies.

• The company also estimated that 93 percent of the Salaries And Wages are either for the provision of fully taxable or zero-rated supplies.
• All of the interest expense represents mortgage interest on the purchase of the new office building.

Required:

Problem 1: Calculate the net GST payable or refund that Lotor will or receive for the cur rent year. Show all supporting calculations and, where you excluded a particular item, provide the reason for the exclusion.