Sew it Seams carries on a retail business as a sole proprietor in Alberta which is a non-participating province. The Quick Method remittance rates are 1.8% for businesses that purchase goods for resale and 3.6% for service
Sew it Seams carries on a retail business as a sole proprietor in Alberta which is a non-participating province. The Quick Method remittance rates are 1.8% for businesses that purchase goods for resale and 3.6% for service providers. During the first quarter of the year, the business has taxable sales of $63,400. Current expenses on which the GST was paid total $26,275. Due to numerous burglaries, Sew it Seams spends $44,900 on a sophisticated security system. All of these amounts are before the inclusion of GST. The system is being amortized over five years on a straight line basis for accounting purposes. The store is used exclusively for the sale of taxable supplies (e.g. merchandise).
Compare the GST payable using the regular method applicable to GST calculations with the amount that would be payable using the Quick Method. Please show all your work and calculations.
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