Q3 Exercise 16-3 (Static) Determine taxable income; determine prior year deferred tax amount; 100% depreciation in year of purchase; financial statement effects [LO16-2]

Exercise 16-3 (Static) Determine taxable income; determine prior year deferred tax amount; 100\% depreciation in year of purchase; financial statement effects [LO16-2] 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 deducted 100% of the equipment's cost for income tax reporting in 2021. At December 31, 2023, the book value of the equipment was $30 million. At December 31, 2024, the book value of the equipment was $28 million. There were no other temporary differences and no permanent differences. Pretax accounting income fo 2024 was $50 million. Required: 1. Prepare the appropriate journal entry to record Ameen's 2024 income taxes. Assume an income tax rate of 25%. 2. What is Ameen's 2024 net income? Complete this question by entering your answers in the tabs below. Prepare the appropriate journal entry to record Ameen's 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., 5,500,000 should be entered as 5.5). Journal entry worksheet Note: Enter debits before credits. Exercise 16-3 (Static) Determine taxable income; determine prior year deferred tax amount; 100% depreciation in year of purchase; financial statement effects [LO16-2] 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 deducted 100% of the equipment's cost for income tax reporting in 2021. At December 31, 2023, the book value of the equipment was $30 million. At December 31, 2024, the book value of the equipment was $28 million. There were no other temporary differences and no permanent differences. Pretax accounting income fo 2024 was $50 million. Required: 1. Prepare the appropriate journal entry to record Ameen's 2024 income taxes. Assume an income tax rate of 25%. 2. What is Ameen's 2024 net income? Complete this question by entering your answers in the tabs below. What is Ameen's 2024 net income? Note: Enter your answer in millions (i.e., 10,000,000 should be entered as 10 )