For the year ended December 31, 2024, Fidelity Engineering reported pretax accounting income of $1,036,000. Selected...

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For the year ended December 31, 2024, Fidelity Engineering reported pretax accounting income of $1,036,000. Selected information for 2024 from Fidelity's records follows: Interest income on municipal governmental bonds $ 92,000 Depreciation claimed on the 2024 tax return in excess of depreciation on the income statement Carrying amount of depreciable assets in excess of their tax basis at year-end Warranty expense reported on the income statement 116,000 208,000 56,000 46,000 Actual warranty expenditures in 2024 Fidelity's income tax rate is 25%. At January 1, 2024, Fidelity's records indicated balances of zero and $23,000 in its deferred tax asset and deferred tax liability accounts, respectively. Required: 1. Determine the amounts necessary to record income taxes for 2024, and prepare the appropriate journal entry. 2. What is Fidelity's 2024 net income? For the year ended December 31, 2024, Fidelity Engineering reported pretax accounting income of $1,036,000. Selected information for 2024 from Fidelity's records follows: Interest income on municipal governmental bonds $ 92,000 Depreciation claimed on the 2024 tax return in excess of depreciation on the income statement Carrying amount of depreciable assets in excess of their tax basis at year-end Warranty expense reported on the income statement 116,000 208,000 56,000 46,000 Actual warranty expenditures in 2024 Fidelity's income tax rate is 25%. At January 1, 2024, Fidelity's records indicated balances of zero and $23,000 in its deferred tax asset and deferred tax liability accounts, respectively. Required: 1. Determine the amounts necessary to record income taxes for 2024, and prepare the appropriate journal entry. 2. What is Fidelity's 2024 net income?

Answer rating: 100% (QA)

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