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Mr Jack Morton Works in the Province of Alberta, a Province

Question 72

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Mr. Jack Morton works in the province of Alberta, a province that does not participate in the HST program. He is a management consultant who delivers services that are billed at a GST inclusive amount of $286,650 during the current year. Before the inclusion of any applicable GST, his expenses for the year are $18,000 for rent, $23,500 for clerical salaries, $5,000 for interest on a loan, and $3,000 for office supplies (purchases of these supplies totaled $4,500 for the year). In addition, he acquired office furniture at the beginning of the year for $32,000, plus GST of $1,600. The cost of this furniture is being expensed over 10 years at a rate of $3,200 per year.
Determine the net GST payable or refund for the year.

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