On January 1, 2021, Ameen Company purchased major pieces of manufacturing equipment for a total of $48 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 $42 million and its tax basis was $32 million. At December 31, 2024, the book value of the equipment was $40 million and its tax basis was $25 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2024 was $30 million. Required: Prepare the appropriate journal entry to record Ameen’s 2024 income taxes. Assume an income tax rate of 25%. What is Ameen’s 2024 net income?
On January 1, 2021, Ameen Company purchased major pieces of manufacturing equipment for a total of $48 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 $42 million and its tax basis was $32 million. At December 31, 2024, the book value of the equipment was $40 million and its tax basis was $25 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2024 was $30 million. Required: Prepare the appropriate journal entry to record Ameen’s 2024 income taxes. Assume an income tax rate of 25%. What is Ameen’s 2024 net income?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Intermediate Accounting ll ch 16
5. On January 1, 2021, Ameen Company purchased major pieces of manufacturing equipment for a total of $48 million. Ameen uses straight-line
Required:
- Prepare the appropriate
journal entry to record Ameen’s 2024 income taxes. Assume an income tax rate of 25%. - What is Ameen’s 2024 net income?
![Required 1
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 2 decimal place (i.e., 10,000,000 should be entered as 10.00).
Required 2
View transaction list
Journal entry worksheet
1
Record 2024 income taxes.
Note: Enter debits before credits.
Event
1
Record entry
General Journal
Clear entry
Debit
Credit
View general journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb19ac792-f274-4206-9191-c46f3b775258%2F20cbdae8-025b-4d87-95be-7c85213d65e4%2Fqbft5n_processed.png&w=3840&q=75)
Transcribed Image Text:Required 1
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 2 decimal place (i.e., 10,000,000 should be entered as 10.00).
Required 2
View transaction list
Journal entry worksheet
1
Record 2024 income taxes.
Note: Enter debits before credits.
Event
1
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
![Required 1 Required 2
What is Ameen's 2024 net income?
Note: Enter your answers in millions rounded to 2 decimal place (i.e., 10,000,000 should be entered as 10.00).
Net income
million
< Required 1
Required 2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb19ac792-f274-4206-9191-c46f3b775258%2F20cbdae8-025b-4d87-95be-7c85213d65e4%2Flipc66_processed.png&w=3840&q=75)
Transcribed Image Text:Required 1 Required 2
What is Ameen's 2024 net income?
Note: Enter your answers in millions rounded to 2 decimal place (i.e., 10,000,000 should be entered as 10.00).
Net income
million
< Required 1
Required 2
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