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Exercise 16-2 (Algo) Determine taxable income; determine prior year deferred tax amount [LO16-2] On January 1, 2018, Ameen Company purchased major pleces of manufacturing equipment

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Exercise 16-2 (Algo) Determine taxable income; determine prior year deferred tax amount [LO16-2] On January 1, 2018, Ameen Company purchased major pleces of manufacturing equipment for a total of $58 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 $52 million and its tax basis was $42 million. At December 31, 2021, the book value of the equipment was $50 million and its tax basis was $35 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2021 was $45 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

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