Complete this question by entering your answers in the tabs below.Required 1 Required 2What is Ameen's 2021 net income? (Enter your answers in millions rounded to 2 decimal place (i.e., 10,000,000 should beentered as 10.00).)Net incomemillion< Required 1Required 2 > On January 1, 2018, Ameen Company purchased major pieces of manufacturing equipment for a total of $74 million. Ameen usesstraight-line depreciation for financial statement reporting and MACRS for income tax reporting. At December 31, 2020, the book valueof the equipment was $68 million and its tax basis was $58 million. At December 31, 2021, the book value of the equipment was $66million and its tax basis was $51 million. There were no other temporary differences and no permanent differences. Pretax accountingincome 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?Complete this question by entering your answers in the tabs below.Required 1 Required 2Prepare the appropriate journal entry to record Ameen's 2021 income taxes. Assume an income tax rate of 25%. (If no entry is requiredfor a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 2 decimalplace (i.e., 10,000,000 should be entered as 10.00).)View transaction listJournal entry worksheet1Record 2021 income taxes.Note: Enter debits before credits.Event1Record entryGeneral JournalClear entryDebitCreditView general journal>

Introduction: - Journal entry is the first stage of accounting process. Journal entry used to record…

Answered: Required: 1. Prepare the appropriate…

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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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