1. A company reports pretax accounting income of $10 million, but because of a single temporary difference, taxable income is $12 million. No temporary differences existed at the beginning of the year, and the tax rate is 25%.Prepare the appropriate journal entry to record income taxes. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

2. On January 1, 2018, Ameen Company purchased major pieces of manufacturing equipment for a total of $36 million. Ameen uses straight-line depreciation for financial statement reporting and deducted 100% of the equipments cost for income tax reporting in 2018. At December 31, 2020, the book value of the equipment was $30 million. At December 31, 2021, the book value of the equipment was $28 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2021 was $50 million.Required:1. Prepare the appropriate journal entry to record Ameens 2021 income taxes. Assume an income tax rate of 25%.2. What is Ameens 2021 net income?

Record 2021 Income Tax

AND Net Income