On June 30, Sarasota Corp. discontinued its operations in Mexico. On September 1, Sarasota disposed of the Mexico facility at a pretax loss of $797,000. The applicable tax rate is 28%. Show the discontinued operations section of Sarasota's statement of comprehensive income. SARASOTA CORP. Partial Statement of Comprehensive Income

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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.