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Question - The restaurant decides to have a opening party (one night before the official restaurant to the public) which invites 50 people including food suppliers, customers and local stores. The opening party provides food and drink (alcohol) which cost $44 (include GST) per person. The total cost of 50 people is $2200. This party is for promotion purpose.
Required -
1. What amount will be included in the Profit and Loss statement, Balance Sheet?
2. How much will be tax deductible?
3. How much GST can be claimed back?
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