Business, 21.09.2020 17:01 charlzperru8234

On January 1, 2018, Ameen Company purchased major pieces of manufacturing equipment for a total of $68 million. Ameen uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. At December 31, 2020, the book value of the equipment was $62 million and its tax basis was $52 million. At December 31, 2021, the book value of the equipment was $60 million and its tax basis was $45 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2021 was $45 million. Required:
1. Prepare the appropriate journal entry to record Ameen’s 2021 income taxes. Assume an income tax rate of 25%.
2. What is Ameen’s 2021 net income?

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 23:30

Using the exxon data as an example what would be the market capitalization of penny's pickles if each share is selling for $175.35?

Answers: 3

Answer

Business, 22.06.2019 09:40

As related to a company completing the purchase to pay process, is there an accounting journal entry "behind the scenes" when xyz company pays for the goods within 10 days of the invoice (gross method is used for discounts and terms are 2/10 net 30) that updates the general ledger?

Answers: 3

Answer

Business, 22.06.2019 11:40

On coral island in 2012, the labor force is 12,000, the unemployment rate is 10 percent, and the labor force participation rate is 60 percent. during 2013, 200 unemployed people found jobs and the working-age population increased by 1,000. the total number of people in the labor force did not change. the working-age population at the end of 2013 was the unemployment rate at the end of 2013 was round up to the second decimal. the labor force participation rate at the end of 2013 was round up to the second decimal.

Answers: 1

Answer

Business, 22.06.2019 16:30

Summarize the specific methods used by interest groups in order to influence governmental decisions making in all three branches of government. provide at least two examples from each branch.

Answers: 3

Answer

You know the right answer?

On January 1, 2018, Ameen Company purchased major pieces of manufacturing equipment for a total of $...

Questions