Question

On January 1, 2010, Ameen Company purchased a building for $36 million. Ameen uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. At December 31, 2012, the carrying value of the building was $30 million and its tax basis was $20 million. At December 31, 2013, the carrying value of the building was $28 million and its tax basis was $13 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2013 was $45 million.
Required:
1. Prepare the appropriate journal entry to record Ameen’s 2013 income taxes. Assume an income tax rate of 40%. 2. What is Ameen’s 2013 net income?
2. What is Ameen’s 2013 net income?



$1.99
Sales1
Views770
Comments0
  • CreatedDecember 23, 2013
  • Files Included
Post your question
5000