Reference no: EM133168902

Question -

Q1. Ms. Melinda Martins lives and works in Nova Scotia where the relevant HST rate is 15%. During the current year, she records consulting service revenue of $268000.

Rent for this period on her office premises totals $28000 and she pays a clerical assistant an annual salary of $22500. Her capital expenditures during the period are for new office furniture with a cost of $34000 and computer hardware and software for $10000. All amounts are before the addition of HST and the assets are used 100 percent for the provision of taxable supplies. She files her HST return on an annual basis. Determine the net HST payable or refund for the year.

Q2. During a taxation period, Darcy Wholesalers purchased merchandise for $235000. Merchandise sales during this period totaled $410000 and the cost of the merchandise sold was 256000. Ignoring all other costs incurred by Darcy and assuming a rate of 5 percent, how much tax would be paid by Darcy under an invoice-credit VAT system (net tax owing)?

Q3. 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 $1302000 before HST. Its cost of sales for the period was $889000 before HST and its merchandise inventories increased by 100000, again before HST. Salaries and wages for the period totaled $74000, interest expense was $16000, and amortization expense was $82000. No capital expenditures were made during the period. Determine the net HST payable or refund for the quarter.