Exercise 16-3 (Algo) Determine taxable income; determine prior year deferred tax amount; 100% depreciation in year of purchase [LO16-2] On January 1, 2018. Ameen Company purchased major pleces of manufacturing equipment for a total of $144 million. Ameen uses straight-line depreciation for financial statement reporting and deducted 100% of the equipment's cost for income tax reporting in 2018. At December 31,2020 , the book value of the equipment was $120 million. At December 31,2021 , the book value of the equipment was $112 milion. There were no otheritemporary differences and no permanent differences. Pretax accounting income for 2021 was $172 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 joumal entry to record Ameen's 2021 income taxes. Assume an income tax rate of 25%. (If no entry is required Por 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., 10,100,000 should be entered as 10.1).) Prepare the appropriate journal entry to record Ameen's 2021 income taxes. Assume an income tax rate of 25%. for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions place (i.e., 10,100,000 should be entered as 10.1).) Journal entry worksheet Note: Enter debits before credits. xercise 16-3 (Algo) Determine taxable income; determine prior year deferred tax amount; 100% epreciation in year of purchase [LO16-2] On January 1, 2018, Ameen Company purchased major pieces of nranufacturing equipment for a total of $144 million. Ameen uses traight-line depreclation for financial statement reporting and deducted 100% of the equipment's cost for income tax reporting in 2018. At December 31, 2020, the book value of the equipment was $120 million. At December 31,2021 , the book value of the equipment was $112 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2021 was $172 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. What is Ameen's 2021 net income? (Enter your answers in millions rounded to 1 decimal place (i.e, 10,100,000 should be entered as 10.1).)