On January 1, 2010, Ameen Company purchased a building for $36 million. Ameen us
ID: 2368810 • Letter: O
Question
On January 1, 2010, 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, 2012, the carrying value of the building was $30 million and its tax basis was $20 million. At December 31, 2013, the carting 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 the 2013 was $45 million. 1. Prepare the appropriate journal entry to record Ameen's 2013 income taxes. Assume an income tax rate of 40%. 2. What is Ameen's 2013 net income?Explanation / Answer
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