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

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Accounting

On January 1,2021, Ameen Company purchased major pieces of manufacturing equipment for a total of $54 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 $48 million and its tax basis was $38 million. At December 31,2024, the book value of the equipment was $46 million and its tax basis was $31 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2024 was $35 million.
Required:
Prepare the appropriate journal entry to record Ameens 2024 income taxes. Assume an income tax rate of 25%.
What is Ameens 2024 net income?

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