ABC Corporation granted by the government to operate a franchise with their respective receipts for the 3rd quarter of 2020 as follows: Supply of electricity.     P 1M Supply of water.            P 2M Supply of gas.               P 1.5M Communication.           P 200,000 Broadcasting.                P 500,000 1. How much is the franchise tax for the 3rd Quarter of 2020? A. 85,000 B. 120,000 C. 75,000 D. 70,000

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Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.