Logan Inc. is located in Ontario where a 13 percent HST is applicable. During the current year, the Company makes the following capital expenditures: The building will be used 40 percent to produce fully taxable supplies and 60 percent for zero-rated supplies. The equipment will be used 35 percent for fully taxable supplies, 25 percent for zero-rated supplies, and 40 percent for exempt supplies.
Determine the input tax credits that Logan Inc. can claim as a result of these capital expenditures.

Question

Logan Inc. is located in Ontario where a 13 percent HST is applicable. During the current year, the Company makes the following capital expenditures:  The building will be used 40 percent to produce fully taxable supplies and 60 percent for zero-rated supplies. The equipment will be used 35 percent for fully taxable supplies, 25 percent for zero-rated supplies, and 40 percent for exempt supplies.
Determine the input tax credits that Logan Inc. can claim as a result of these capital expenditures.

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The Answer of Logan Inc. is located in Ontario where a 13 percent HST is applicable. During the current year, the Company makes the following capital expenditures:  The building will be used 40 percent to produce fully taxable supplies and 60 percent for zero-rated supplies. The equipment will be used 35 percent for fully taxable supplies, 25 percent for zero-rated supplies, and 40 percent for exempt supplies.
Determine the input tax credits that Logan Inc. can claim as a result of these capital expenditures.

Logan Inc Is Located in Ontario Where a 13 Percent HST