On January 1, 2021, Ameen Company purchased major pieces of manufacturing equipment for a total of $72 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 $60 million. At December 31, 2024, the book value of the equipment was $56 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2024 was $156 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. Required 1 Required 2 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., 10,100,000 should be entered as 10.1). View transaction list Journal entry worksheet < 1 Record 2024 income taxes. Note: Enter debits before credits. Event 1 General Journal Debit Credit
On January 1, 2021, Ameen Company purchased major pieces of manufacturing equipment for a total of $72 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 $60 million. At December 31, 2024, the book value of the equipment was $56 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2024 was $156 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. Required 1 Required 2 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., 10,100,000 should be entered as 10.1). View transaction list Journal entry worksheet < 1 Record 2024 income taxes. Note: Enter debits before credits. Event 1 General Journal Debit Credit
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 11E: On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an...
Related questions
Question
Transcribed Image Text:On January 1, 2021, Ameen Company purchased major pieces of manufacturing equipment for a total of $72 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 $60 million. At December 31, 2024, the book value of the
equipment was $56 million. There were no other temporary differences and no permanent differences. Pretax accounting income for
2024 was $156 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.
Required 1
Required 2
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., 10,100,000 should be entered as 10.1).
View transaction list
Journal entry worksheet
<
1
Record 2024 income taxes.
Note: Enter debits before credits.
Event
1
General Journal
Debit
Credit
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT