Question

a) Michael is working on the quarterly GST remittance to the government. He records $34510.39 in GST-taxable sales for the period, and $22973.43 in GST-taxable purchases for the business. What is the GST payable amount owing to the government for the quarter? Show your work to 6 decimals and round your final answer to the nearest cent [2 decimal places] with the appropriate units.

b) Michael receives a SEMI-annual tax bill of 3726.65. He sees that the mill rate charged to the property is 14.1 and uses this information to calculate the assessed value of the building. What is the assessed value? Show your answer to 6 decimal places and enter your final answer rounded to the nearest cent [2 decimals] with the appropriate units.

Answer 1

a)

1) GST payable in taxable sales are= $ 34510.39

2) GST paid in taxable purchase are= $ 22973.43

Total GST payable /owing to government are (1-2)= $ 11536.96

b)

To calculate property Tax the following is the formula

Property tax leived on property= (Mill rate* Taxable property value/assessed value of property) / 1000

1mill rate is equal to $1 in property tax levied per $ 1000 of property's assed value.

so, by the above formula we can calculate assessed value of property

Assessed value of property =(Property tax leived on property / mill rate) * 1000

• Annual tax bill/ Property tax leived = $ 3726.65
• mill rate =14.1

by putting values in formual ,we get

Assessed value of property =(Property tax leived on property / mill rate) * 1000

=(3726.65 / 14.1)*1000

=264301.418439

= $ 264301.42( rounded off to two decimal)