Bangura, Incorporated has regular taxable income of $932,500,000 and AFSI of $1,437,100,000. Required: Compute Bangura's regular tax liability, tentative minimum tax, AMT (if any) and total tax due. Regular tax liability Tentative minimum tax AMT Total tax due

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A: Formulas: Minimum stock price = Face value / Convertible shares

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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.