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On January 1, 2018, Ameen Company purchased major pieces of manufacturing equipment for a total of $74 million. Ameen uses straight-line depreciation for financial statement

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On January 1, 2018, Ameen Company purchased major pieces of manufacturing equipment for a total of $74 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 $68 million and its tax basis was $58 million. At December 31, 2021, the book value of the equipment was $66 million and its tax basis was $51 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate journal entry to record Ameen's 2021 income taxes. Assume an income tax rate of 25%. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 2 decimal place (l.e., 10,000,000 should be entered as 10.00).) No Event General Journal Debit Credit 1 1 Income tax expense Deferred tax liability Income tax payable 56.25 15.00 Recured Required 2 > On January 1, 2018, Ameen Company purchased major pieces of manufacturing equipment for a total of $74 million. Ameen uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. At December 31, 2020, the book va of the equipment was $68 million and its tax basis was $58 million. At December 31, 2021, the book value of the equipment was $6 million and its tax basis was $51 million. There were no other temporary differences and no permanent differences, Pretax accountin 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? Answer is not complete Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is Ameen's 2021 net income? (Enter your answers in millions rounded to 2 decimal place (1.e., 10,000,000 should be entered as 10.00).) Not income $ 3.75 million

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