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On January 1, 2018. Ameen Company purchased major pieces of manufacturing equipment for a total of $58 million. Ameen uses straight-line depreciation for financial statement
On January 1, 2018. Ameen Company purchased major pieces of manufacturing equipment for a total of $58 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 $52 million and its tax basis was $42 million. At December 31, 2021, the book value of the equipment was $50 million and its tax basis was $35 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? Complete this question by entering your answers in the tabs below. Required: 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 (le, 10,000,000 should be entered as 10.00).) View transaction fist Journal entry worksheet
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