On January 1, 2013, Ameen Company purchased a building for $39 million. Ameen uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. At December 31, 2015, the book value of the building was $33 million and its tax basis was $23 million. At December 31, 2016, the book value of the building was $31 million and its tax basis was $16 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2016 was $50 million.

Required:

1.

Prepare the appropriate journal entry to record Ameens 2016 income taxes. Assume an income tax rate of 40%. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

Record 2016 income taxes.

Event

General Journal

Debit

Credit

1

*Enter debits before credits