Callie has a small catering business. She provides services only in Quebec and is registered to GST and QST since 2018. Her gross income (before sales taxes) for 2020 was $47,250. She only had the following expenses: - Kitchen appliances: $11,200+ tax (GST & QST) - Culinary Books: $460 + tax (only GST) - Interest and bank charges: $225 - Meals with clients: $2,500 + taxes + tips of $440 Required: 1. Calculate the GST and QST owed by Callie for 2020. Prepare a worksheet showing all calculations. 2. Write a short memo to Callie, referring to the attached return and worksheet.
Callie has a small catering business. She provides services only in Quebec and is registered to GST and QST since 2018. Her gross income (before sales taxes) for 2020 was $47,250. She only had the following expenses: - Kitchen appliances: $11,200+ tax (GST & QST) - Culinary Books: $460 + tax (only GST) - Interest and bank charges: $225 - Meals with clients: $2,500 + taxes + tips of $440 Required: 1. Calculate the GST and QST owed by Callie for 2020. Prepare a worksheet showing all calculations. 2. Write a short memo to Callie, referring to the attached return and worksheet.
Chapter9: Deductions: Employee And Self-employed-related Expenses
Section: Chapter Questions
Problem 31P
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Callie has a small catering business. She provides services only in Quebec and is registered to GST and QST since 2018. Her gross income (before sales taxes) for 2020 was $47,250.
She only had the following expenses:
- Kitchen appliances: $11,200+ tax (GST & QST)
- Culinary Books: $460 + tax (only GST)
- Interest and bank charges: $225
- Meals with clients: $2,500 + taxes + tips of $440
Required:
1. Calculate the GST and QST owed by Callie for 2020. Prepare a worksheet showing all calculations.
2. Write a short memo to Callie, referring to the attached return and worksheet.
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