Exercise 16-2 (Algo) Determine taxable income; determine prior year deferred tax amount [LO16- 2] On January 1, 2018, Ameen Company purchased major pieces of manufacturing equipment for a total of $72 million. Ameen uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. At December 31,2020 , the book value of the equipment was $66 million and its tax basis was $56 million. At December 31,2021 , the book value of the equipment was $64 million and its tax basis was $49 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 Ameen's 2021 income taxes. Assume an income tax rate of 25%. 2. What is Ameen's 2021 net income? Complete this question by entering your answers in the tabs below. Prepare the appropriate journal entry to record Ameen's 2021 income taxes. Assume an income tax rate of 25%. If no entry is req for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 2 dec place (i.e., 10,000,000 should be entered as 10.00).) Journal entry worksheet