On January 1, 2013, Ameen Company purchased a building for $76 million. Ameen uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. At December 31, 2017, the book value of the building was $70 million and its tax basis was $60 million. At December 31, 2018, the book value of the building was $68 million and its tax basis was $53 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2018 was $55 million.

Required: 1. Prepare the appropriate journal entry to record Ameens 2018 income taxes. Assume an income tax rate of 40%. 2. What is Ameens 2018 net income?

Ayres Services acquired an asset for $94 million in 2018. The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). For tax purposes the assets cost is depreciated by MACRS. The enacted tax rate is 40%. Amounts for pretax accounting income, depreciation, and taxable income in 2018, 2019, 2020, and 2021 are as follows:

in millions 2019 $ 365 $ 385 $ 400 23.5 2018 2020 2021 435 23.5 Pretax accounting income Depreciation on the income statement Depreciation on the tax return 23.5 23.5 (28.51(36.51 18.51 (10.51 $ 360 372 $405 $ 448 Taxable income Required Determine (a) the temporary book-tax difference for the depreciable asset and (b) the balance to be reported in the deferred tax liability account. (Leave no cell blank, enter O" wherever applicable. Show all amounts as positive amounts. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) Beginning of 2018 End of 2020 End of 2021 Deferred Tax Liability