On January 1, 2021, Ameen Company purchased major pieces of manufacturing equipment for a total of $36 million. Ameen uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. At December 31, 2023, the book value of the equipment was $30 million and its tax basis was $20 million. At December 31, 2024, the book value of the equipment was $28 million and its tax basis was $12 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2024 was $50 million.

Required:

Prepare the appropriate journal entry to record Ameens 2024 income taxes. Assume an income tax rate of 25%.

What is Ameens 2024 net income?

Complete this question by entering your answers in the tabs below.

Required 1

Required 2

Prepare the appropriate journal entry to record Ameens 2024 income taxes. Assume an income tax rate of 25%. Note: 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 1 decimal place (i.e., 10,000,000 should be entered as 10.0).

No	Event	General Journal	Debit	Credit
1	1	Income tax expenseselected answer correct	12.5selected answer correct	not attempted
		Deferred tax liabilityselected answer correct	0.5selected answer incorrect	not attempted
		Income tax payableselected answer correct	not attempted	13.0