DeniseDenise​'s Home Income Tax business operates only during tax season. This year DeniseDenise grossed ​$27 comma 68027,680 including GST. She also spent ​$74437443 before GST on her paper and supply purchases. If DeniseDenise is voluntarily registered for​ GST, how much does she owe the Canada Revenue Agency for​ GST?

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To calculate the amount DeniseDenise owes for GST, you need to follow these steps:

Step 1: Calculate the GST amount on her gross income:
GST = Gross income * GST rate
Here, the GST rate in Canada is 5%.

GST = $27,680 * 0.05
GST = $1,384

Step 2: Calculate the GST paid on purchases:
GST_paid = Total purchases * GST rate
In this case, we need to calculate it before the GST was applied, so we divide the amount spent by (1 + GST rate).

GST_paid = $7,443 / (1 + 0.05)
GST_paid = $7,443 / 1.05
GST_paid = $7,075.24

Step 3: Calculate the net amount DeniseDenise owes for GST:
Net_amount_owed = GST - GST_paid

Net_amount_owed = $1,384 - $7,075.24
Net_amount_owed = -$5,691.24

In this case, it appears that DeniseDenise's GST paid on purchases ($7,075.24) exceeds the GST on her gross income ($1,384). This means that she may qualify for a GST refund of $5,691.24 from the Canada Revenue Agency.