# On January 1, 2018, Ameen Company purchased major pieces of manufacturing equipment for a total of...

###### Question:

On January 1, 2018, Ameen Company purchased major pieces of manufacturing equipment for a total of $68 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$62 million and its tax basis was $52 million. At December 31, 2021, the book value of the equipment was$60 million and its tax basis was $45 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?

#### Similar Solved Questions

##### Calculating Missing Amounts and Cost of Goods Manufactured [LO 2-6] For each of the following independent...
Calculating Missing Amounts and Cost of Goods Manufactured [LO 2-6] For each of the following independent cases A–D, compute the missing values: (Enter all amounts as positive values.) M2-18 Calculating Missing Amounts and Cost of Goods Manufactured [LO 2-6] For each of the following independ...
##### A) Setup Cost: b) Setup Time: Rick Wing has a repetitive manufacturing plant producing automobile steering...
a) Setup Cost: b) Setup Time: Rick Wing has a repetitive manufacturing plant producing automobile steering wheels. Use the following data to prepare for a reduced lot size. The firm uses a work year of 305 days. Setup labor cost $40.00 per hour Annual holding cost$16 per unit Daily production (8...
##### Sketch the graph of a quadratic function for which the related quadratic equation has only one solution
Sketch the graph of a quadratic function for which therelated quadratic equation has only one solution. Then,sketch one that has two solutions. Explain how youknow by looking at the graph the number of solutionsthere are....
##### The Second Cup is a Canadian specialty coffee retailer with over 350 cafés that serve the...
The Second Cup is a Canadian specialty coffee retailer with over 350 cafés that serve the needs of thousands of guests daily. Its annual reports include the following details (in thousands of Canadian dollars): 2015 Net sales: $36,238 Accounts receivable:$5,156 Allowance for doubtful accoun...
##### One can assume a quantum mechanical harmonic oscillator model for the N-H stretching vibrations of the...
One can assume a quantum mechanical harmonic oscillator model for the N-H stretching vibrations of the peptide bonds. For the harmonic oscillator the energy levels are given by: E, = (V+})ħw where: W= /k/ u In the above express k is the force constant and u is the reduced mass. (a) Write the Sc...
##### Draw a diagram containing three indifference curves. Also write a short (1-2 sentence) explanation of why...
draw a diagram containing three indifference curves. Also write a short (1-2 sentence) explanation of why you have drawn each indifference curve this way. Sophia consumes two goods, hummus and carrots. For each carrot she consumes, she needs exactly 3 ounces of hummus. Place carrots on the horizonta...
##### 4.2.4A. Consider the vector v - 5si-j. (A.) Find the magnitude of v and leave your...
4.2.4A. Consider the vector v - 5si-j. (A.) Find the magnitude of v and leave your answer in exact form. (B.) Find the angle that v makes with the vector i (assume that this angle is measured in the counterclockwise direction, like usual). Round your answer to two decimal places. Hint: It may be hel...
##### Another physics problem. Please help. James Joule (after whom the unit of energy is named) claimed...
Another physics problem. Please help. James Joule (after whom the unit of energy is named) claimed that the water at the bottom of Niagara Falls should be warmer than the water at the top, 51 m above the bottom. He reasoned that the falling water would transform its gravitational potential energy...
##### Which of the following statements about sequential search is true? a. The list must be a...
Which of the following statements about sequential search is true? a. The list must be a sorted list. b. It works only on a list of integers. c. When the search target is not in the list, every element must be tested d. The search typically starts at the middle of the list and searches on either sid...