Exercise $16-2($Algo$)$ Determine taxable income; determine prior year deferred tax amount; financial statement effects $[$LO$16-2]$

On January $1,2021,$ Ameen Company purchased major pieces of manufacturing equipment for a total of $$76$ million. Ameen uses straight$-$line depreciation for financial st$$tement reporting and MACRS for income tax reporting. At December $31,2023,$ the book value of the equipment was $$70$ million and its tax basis was $$60$ million. At December $31,2024,$ the book value of the equipment was $$68$ million and its tax basis was $$53$ million. There were no other temporary differences and no permanent differences. Pretax accounting income for $2024$ was $$55$ 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?

Complete this question by entering your answers in the tabs below.

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 miltions rounded to $2$ decimal place $($i$.$e$.,10,000,000$ should be entered as $10\mathrm{.}00).$