What is Ameens net income

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Question - On January 1, 2013, 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, 2017, the book value of the building was $30 million and its tax basis was $20 million. At December 31, 2018, the book 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 2018 was $45 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?

Reference no: EM132495766

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