Which amortization is being taken during this period

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Reference no: EM133327711

Case: High Class is a retail business situated in Ontario. All of its revenues and expenses take place in the province of Ontario. There are no associated persons and it files its HST return on an annual basis. Ontario has a 13 percent HST rate. The Income Statement of High Class for the current year is as follows (all amounts are shown without HST): Revenues: Fully Taxable Goods $265,000 Exempt Services 73,000 $338,000 Less Expenses: Cost Of Goods Sold (All Taxable) ($140,000) Amortization Expense ( 23,000) Salaries And Wages ( 17,000) Rent ( 18,000) Interest Expense ( 50,000) Other Operating Expenses ( 21,000) ( 269,000) Income Before Taxes $ 69,000 Less: Federal And Provincial Income Taxes ( 14,000) Net Income $ 55,000 Other Information:

1. Inventories of taxable goods increased by $13,000 during the year.

2. A capital expenditure was made during the year at an HST inclusive cost of $62,150. The expenditure was for equipment that will be used 65 percent for the provision of fully taxable goods. HST was paid on the acquisition of all assets on which amortization is being taken during this period.

3. All of the Other Operating Expenses involved the acquisition of fully taxable supplies

Reference no: EM133327711

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