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Montagne Inc. is located in Ontario and carries on all of it

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Montagne Inc. is located in Ontario and carries on all of its… Montagne Inc. is located in Ontario and carries on all of its business in that province.?he HST rate in that province is 13 percent.The Income Statement of Montagne Inc. for the current fiscal year ending December 31 is as follows (applicable HST has been excluded from all amounts):Sales And Other?evenues?????????????????????????823,000?ess Expenses:???ost Of Goods?old????????????$478,000)???mortization?xpense??????????? 132,000)???alaries And?ages??????????????7,000)???nterest?xpense???????????????(?6,000)???ther Operating?xpenses?????????32,000)??????? 715,000)Income Before?axes?????????????????????????????$108,000?ess:?ederal And Provincial Income Taxes???????3,000)Net?ncome?????????????????????????????????????? 85,000?Montagne is an annual filer for HST purposes.Other Information:1.?Sales And Other Revenues included $120,000 in exempt supplies and $116,000 in zero- rated supplies.?he remaining sales were fully taxable for HST purposes.2.?All of the goods sold involved the provision of either fully taxable or zero-rated supplies.?uring the year, inventories of these goods decreased by $74,000.?ST was paid on all goods that were purchased for resale during the year.?3.?Capital expenditures for?he year amounted to $1,200,000 before HST.?ST was paid on all amounts.?f this total, $800,000 was for an office building that will be used 85 percent for the provision of fully taxable or zero-rated supplies.?he remaining $400,000 was for equipment that will be used 27 percent in the provision of exempt supplies.?ST was paid on the acquisition of all assets on which amortization is being taken during the year.4.?All of the Other Operating Expenses involved the acquisition of fully taxable supplies and were acquired to assist in the provision of fully taxable supplies.5.?Of the Salaries And Wages, 32 percent were paid to employees involved in providing exempt supplies.?Required:?alculate the net HST payable or refund that Montagne Inc. will remit or receive for the current year.?ou must write “Nil” or “N/A” if an item in the Income Statement is not subject to GST/HST. Otherwise marks will not be given.?ccountingBusinessFinancial AccountingACCT 3470

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