Prepare the appropriate journal entry to record ameen

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On January 1, 2008, Ameen Company purchased a building for $36 million. Ameen uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. At December 31, 2010, the carrying value of the building was $30 million and its tax basis was $20 million. At December 31, 2011, the carrying value of the building was $28 million and its tax basis was $13 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2011 was $45 million.

Required:

1. Prepare the appropriate journal entry to record Ameen's 2011 income taxes. Assume an income tax rate of 40%.

2. What is Ameen's 2011 net income? 

Reference no: EM131003712

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