Exercise $16-2($Algo$)$ Determine taxable income; determine prior year deferred tax amount; financial

statement effects $[$L$016-2]$

On January $1,2021,$ Ameen Company purchased major pieces of manufacturing equipment for a total of $$64$ 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 $$58$ million and its tax basis was $$48$ million. At December $31,2024,$ the book value of the equipment was $$56$

million and its tax basis was $$41$ 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?