Check my Work Exercise 16-14 Multiple differences (LO16-4, 16-6] For the year ended December 31, 2018, Fidelity Engineering reported pretax accounting income of $991,000. Selected information for 2018 from Fidelity's records follows: $34,800 59,200 Interest income on municipal bonds Depreciation claimed on the 2018 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 Actual warranty expenditures in 2018 92,000 28,100 17,400 Fidelity's income tax rate is 40%. At January 1, 2018, Fidelity's records indicated balances of zero and $13,120 in its deferred tax asset and deferred tax liability accounts, respectively. Required: 1. Determine the amounts necessary to record income taxes for 2018 and prepare the appropriate journal entry. 2. What is Fidelity's 2018 net income? 1. Determine the amounts necessary to record income taxes for 2018 and prepare the appropriate journal entry. 2. What is Fidelity's 2018 net income? Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 GJ Required 2 Determine the amounts necessary to record income taxes for 2018. (Enter your answers in thousands rounded to two decimal places (i.e. 1,230 should be entered as 1.23). Amounts to be deducted should be indicated with a minus sign.) Tax Rate % Tax $ Recorded as: $ 991.00 Pretax accounting income Permanent difference Income subject to taxation $ 991.00 x Temporary difference Taxable income (income tax return) $ 991.00 x Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 GJ Required 2 Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations to two decimal places. Enter your answers in thousands rounded to two decimal places (i.e. 1,230 should be entered as 1.23).) View transaction list Journal entry worksheet