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Exercise $16-3(Static)$ Determine taxable income; determine prior year deferred tax amount; $100\%$

depreciation $in$ year $of$ purchase; financial statement effects $[LO16-2]$

$On$ January $1,2021,$ Ameen Company purchased major pieces $of$ manufacturing equipment for a total $of$ $$36$ million. Ameen uses

straight$-$line depreciation for financial statement reporting and deducted $100\%of$ the equipment's cost for income tax reporting $in$

$At$ December $31,2023,$ the book value $of$ the equipment was $$30$ million. $At$ December $31,2024,$ the book value $of$ the

equipment was $$28$ million. There were $no$ other temporary differences and $no$ permanent differences. Pretax accounting income for

$2024$ was $$50$ million.

Required:

Prepare the appropriate journal entry $to$ record Ameen's $2024$ income taxes. Assume $an$ income tax rate $of25\%.$

What $is$ Ameen's $2024$ net income? Prepare the appropriate journal entry $to$ record Ameen's $2024$ income taxes. Assume $an$ income tax rate $of25\%.$

Note: $Ifno$ entry $is$ required for a transactio$\frac{n}{e}$vent, select $"No$ journal entry required" $in$ the first account field. Enter your answers $in$

millions rounded $to1$ decimal place $(i.e.,5,500,000$ should $be$ entered $as5\mathrm{.}5).$ Complete this question $by$ entering your answers $in$ the $tabs$ below.

Required $2$

What $is$ Ameen's $2024$ net income?

Note: Enter your answer $in$ millions $(i.e.,10,000,000$ should $be$ entered $as10).$

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