Underwater World Ltd., is located in Alberta. Alberta does not participate in the HST program and does not have a provincial sales tax. Among the purchases Underwater World Ltd. made during December were the following items: Waterways Ltd. carries supplies for charter boat operators and requires the payment of a membership to use their services. The input tax credits that Underwater World Ltd. can claim for the above items for December are:

Question

Underwater World Ltd., is located in Alberta. Alberta does not participate in the HST program and does not have a provincial sales tax. Among the purchases Underwater World Ltd. made during December were the following items:  Waterways Ltd. carries supplies for charter boat operators and requires the payment of a membership to use their services. The input tax credits that Underwater World Ltd. can claim for the above items for December are:

Quizplus · Accepted Answer

Underwater World Ltd. can claim input tax credits for the following items:
- Boat gasoline and oil: $50
- Paid to Waterways Ltd. for charter boat supplies: $120
- Paid to AB Aviation Ltd. for airplane parts: $225

The total input tax credits that Underwater World Ltd. can claim is $395 (50 + 120 + 225).