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Business, 07.04.2020 02:52 autumnplunkett09
On January 1, 2018, Ameen Company purchased major pieces of manufacturing equipment for a total of $64 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 $58 million and its tax basis was $48 million. At December 31, 2021, the book value of the equipment was $56 million and its tax basis was $41 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2021 was $30 million.
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