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Question
Shaggy Sheep Ltd is in the business of farming and is registered for GST. Recently the company has purchased a second-hand tractor from one of its main shareholders, Sid Shaggy. Sid Shaggy is not registered for GST and no GST was charged on the sale of the tractor to the company. When Sid bought the tractor originally, he paid $270,000. It now has a market value of $120,000 - which is the same amount the company has paid Sid for the tractor. Calculate how much GST the company can claim from the purchase of the tractor.
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