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Let's break down the problem step by step to determine how much Barb owes Revenue Canada for GST.

### Given information:
- Barb's total revenue (including GST) = $69,452.35
- GST rate = 5%
- Barb's expenses before GST = $23,896.98
- We need to calculate how much GST Barb owes.

### Step 1: Separate the GST from Barb's revenue.
The revenue includes GST, so the revenue before GST needs to be calculated.

Let $ R $ represent the revenue before GST. If GST is 5%, then the total revenue $ T $ (which includes the GST) can be expressed as:
\[
T = R + 0.05R = 1.05R
\]

Given that $ T = 69,452.35 $, we can solve for $ R $:
\[
R = \frac{69,452.35}{1.05}
\]
\[
R \approx 66,145.10
\]

So, Barb's revenue before GST is approximately $66,145.10.

### Step 2: Calculate the GST collected on Barb's revenue.
Since GST is 5%, the GST collected on Barb's revenue is:
\[
GST_{\text{collected}} = 69,452.35 - 66,145.10 = 3,307.25
\]

### Step 3: Calculate the GST paid on Barb's expenses.
Barb's expenses before GST are $23,896.98, so the GST on these expenses is:
\[
GST_{\text{paid}} = 0.05 \times 23,896.98 = 1,194.85
\]

### Step 4: Determine how much GST Barb owes.
The GST Barb owes is the GST she collected minus the GST she paid:
\[
GST_{\text{owed}} = 3,307.25 - 1,194.85 = 2,112.40
\]

Thus, Barb owes **$2,112.40** to Revenue Canada for GST.

Would you like further clarification or details on any part of this calculation?

Here are 5 related questions you might find useful:
1. How would the amount owed change if the GST rate were different?
2. How can Barb reduce her GST liability in the future?
3. What is the difference between input and output tax in GST calculations?
4. What happens if Barb's expenses exceed her revenue in terms of GST?
5. How is GST handled differently in other tax systems (e.g., VAT)?

**Tip:** Always keep clear records of both revenue and expenses to make GST calculations more straightforward and accurate.

Barb's Home Income Tax business operates only during tax season. Last season Barb grossed $69,452.35 including GST. During that season she spent $23,896.98 before GST on paper and supply purchases. How much does Barb owe Revenue Canada for GST?

Learn how to calculate the GST Barb owes Revenue Canada based on her total revenue of $69,452.35 and expenses of $23,896.98. This problem involves percentage calculations and algebra, suitable for Grades 9-12.

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