Case 14. On June 30, 2014, Wish Corporation incurred a P200,000 net loss form disposal of business segment. Also on  June 30, 2014, Wish paid P80,000 for property taxes assessed for the calendar year 2014.  14. What amount of the foregoing items should be included in the determination of Wicked Wish’s net income or loss for  the 6-month interim period ended June 30, 2014? a. 280,000 b. 240,000 c. 180,000 d. 140,000

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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.