On January 1, 2013, Ameen Company purchased a building for $64 million. Ameen uses straight-line depreciation...

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On January 1, 2013, Ameen Company purchased a building for $64 million. Ameen uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. At December 31, 2017, the book value of the building was $58 million and its tax basis was $48 million. At December 31, 2018, the book value of the building was $56 million and its tax basis was $41 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2018 was $30 million. Required: 1. Prepare the appropriate journal entry to record Ameen's 2018 income taxes. Assume an income tax rate of 40%. 2. What is Ameen's 2018 net income? Required 1 Required 2 Prepare the appropriate journal entry to record Ameen's 2018 income taxes. Assume an income tax rate of 40%. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) View transaction list Journal entry worksheet 1 > Record 2018 income taxes. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal Required 1 Required 2 What is Ameen's 2018 net income? (Enter your answer in millions (i.e., 10,000,000 should be entered as 10).) Net income million < Required 1 Required 2 On January 1, 2013, Ameen Company purchased a building for $64 million. Ameen uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. At December 31, 2017, the book value of the building was $58 million and its tax basis was $48 million. At December 31, 2018, the book value of the building was $56 million and its tax basis was $41 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2018 was $30 million. Required: 1. Prepare the appropriate journal entry to record Ameen's 2018 income taxes. Assume an income tax rate of 40%. 2. What is Ameen's 2018 net income? Required 1 Required 2 Prepare the appropriate journal entry to record Ameen's 2018 income taxes. Assume an income tax rate of 40%. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) View transaction list Journal entry worksheet 1 > Record 2018 income taxes. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal Required 1 Required 2 What is Ameen's 2018 net income? (Enter your answer in millions (i.e., 10,000,000 should be entered as 10).) Net income million < Required 1 Required 2

Answer rating: 100% (QA)

Solution 1 Computation of taxable income Ameen Company ... View the full answer