Business
Business, 27.02.2020 23:58, dmfraley01

On January 1, 2018, Ameen Company purchased major pieces of manufacturing equipment for a total of $62 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 $56 million and its tax basis was $46 million. At December 31, 2021, the book value of the equipment was $54 million and its tax basis was $39 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2021 was $35 million. Required:(1) Prepare the appropriate journal entry to record Ameen’s 2018 income taxes. Assume an income tax rate of 40%.(2) What is Ameen’s 2018 net income?

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