70.2K

Verified Solution

Link Copied!

I NEED THIS ASAPPPP, PLEASEEEEEEEEEEE

Smiths Carpet and Flooring (SAF) is a private corporation providing carpet and flooring for homes in Kingston, Ontario. Many clients chose to have SAF do the in-home installation as well. Below is the income statement for the current fiscal year ending December 31 : All of the above amounts do not include HST. SAF files their HST return annually. Additional information: a) Inventory purchases in the year totaled $101,500. All the inventory relates to the provision of taxable supplies. b) All sales and services are considered fully taxable for HST purposes c) Other operating expenses related to fully taxable supplies. d) Capital expenditures in November of the current year was $182,000 (before HST), with HST being paid on the full amount. The capital expenditure was new equipment which will be depreciated over the estimated 12-year useful life. The capital asset will be used solely for the purpose of providing taxable supplies. Required: 1) Calculate SAF's net HST remittance or refund for the current year assuming SAF does not use the Quick Method. 2) Calculate SAF's net HST remittance or refund for the current year assuming SAF elects to use the Quick Method. 3) Is SAF eligible to use the quick method? Why might a business choose to make this election

Answer & Explanation Solved by verified expert

See Answer