On January 1, 2018, Ameen Company purchased major pieces of manufacturing equipment for a total of $46 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 $40 million and its tax basis was $30 million. At December 31, 2021, the book value of the equipment was $38 million and its tax basis was $23 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2021 was $35 million.

1. Prepare the appropriate journal entry to record Ameens 2021 income taxes. Assume an income tax rate of 25%.

Income tax expense	8.75
		Deferred tax liability
		Income tax payable

The 8.75 is correct, but I cant figure out the other numbers after multiple calculations.

2. What is Ameens 2021 net income?