Alvis Corporation reports pretax accounting income of $240,000, but due to a single temporary difference, taxable income is only $130,000. At the beginning of the year, no temporary differences existed. Required: 1. Assuming a tax rate of 25%, what will be Alviss net income? 2. What will Alvis report in the balance sheet pertaining to income taxes?

On January 1, 2018, Ameen Company purchased major pieces of manufacturing equipment for a total of $54 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 $45 million. At December 31, 2021, the book value of the equipment was $42 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2021 was $112 million. Required: 1. Prepare the appropriate journal entry to record Ameens 2021 income taxes. Assume an income tax rate of 20%. 2. What is Ameens 2021 net income?