Question
Item5 10 points eBook Print References Check my work Check My Work button is now enabledItem 5 Item 5 10 points On January 1, 2018,
Item5 10 points eBook Print References Check my work Check My Work button is now enabledItem 5 Item 5 10 points On January 1, 2018, Ameen Company purchased major pieces of manufacturing equipment for a total of $84 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 $78 million. At December 31, 2021, the book value of the equipment was $60 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2021 was $98 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?
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