27. Gis a cash basis consultant. His balance sheet at the end of the year shows receivables of S100 and accounts payable for utilities of $30. a) What is G's basis in the receivables?

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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.