The following data relate to store equipment of the Company for 2021: ·       Store Equipment, 2020- P1,450,000 ·       Store Equipment, 2021- P1,750,000 ·       Accumulated Depreciation, 2020- P580,000 ·       Accumulated Depreciation, 2021- 600,000 Store equipment costing P300,000 was sold for P210,000, resulting in a gain of P30,000. The depreciation expense on store equipment for 2021 is

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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.