Reference no: EM132863140
Question - The following are the income and expenses for 2020 of Stacy Green, a real estate agent, and a single mom of a 6 year old son. Stacy operates her real estate business in Ontario Canada, where the HST rate is 13%.
If she uses the Simplified Method for calculating her HST, the rate used on her purchases is 13/113.
If she uses the Quick Method, the rate for Ontario is 8.8% on gross sales, with a 1% credit on Sales of $30,000.
Stacy teaches part-time at a college, for which she received a salary
Stacy has provided you with the following data/information
Commission Income (including HST) 197,750.00
Salary (from part-time job) 6,000.00
Expenses (including HST)
Travel 1,695.00
Advertising 5,085.00
Meals % Entertainment 3,390.00
Salaries 4,294.00
Dues & Subscriptions 2,825.00
Accounting fees 734.50
Cell phone 3,955.00
Office Expenses 3,616.00
407 ETR Toll road charge 3,672.50
Car Rental 282.50
Commission expenses 10,283.00
Private Health plan premiums 1,695.00
Childcare expenses 5,000.00
Automobile expenses (excluding HST)
Gas 7,345.00
Repairs & Maintenance 2,825.00
Car Insurance 4,407.00
Parking 197.75
Motor Vehicle License 120.00
Depreciation 550.00
Note: Stacy drove a total of 35,000 kms for the year, of which 24,500 was for business purposes
Home Office expenses (excluding HST)
Electricity 2,400 Heat 3,360
Insurance 1,500
Property taxes 6,850
Mortgage Interest 9,275
Security monitoring 360
Note: Stacy uses a 100 sq ft room in her 3,100 sq ft home as her office
Required - Compute Stacy's HST payable or recoverable, using the Simplified Method in Canada.