Please, I need a CORRECT answer and clear explanation. Thank you, Important to k
ID: 2890363 • Letter: P
Question
Please, I need a CORRECT answer and clear explanation. Thank you,
Important to know:
The goods and services tax (GST) is a federal tax charged on the cost of almost all goods and services. GST-taxable goods and services are taxed at 5%. Registered businesses and organizations will charge the 5% GST on taxable sales of goods and services to their customers, and they pay the 5% GST on their business purchases. Fred must send the GST collected from his customers to the government, minus any GST he paid for goods and services.
2018-01-30 (1),png - Photos See all photos | Add to a creation Edit & Create le Share 9. When Fred of Fred's Auto Repair tallied up his accounts at the end of the year, he found he has paid GST on parking fees of $4000, supplies of $55,000, utilities of $2000, and miscellaneous eligible costs of $3300 During this same time, he found he had charged his customers GST on billings that totalled S75,000 for parts and $65,650 for labour. How much GST must Fred send to the government? to the government for GST Fred must send $ (Type an integer or a decimal.) 6:31 PM Type here to search cR 4, ENG 2018-01-30Explanation / Answer
There is 5% GST on all goods and services
GST paid by Fred = (5% of 4000) + (5% of 55000) + (5% of 2000) + (5% of 3300)
= 200 + 2750 + 100 + 165 = $3215
GST collected from customers = (5% of 75000) + (5% of 65650) = 3750 + 3282.5 = $7032.5
GST send to the government = GST collected from his customers - GST paid by Fred = 7032.5 - 3215 = $3817.5
Therefore GST send to the government = $3817.5