Exercise $16-16($Algo$)$ Multiple differences; financial statement effects $[$LO$16-2,16-3,16-5]$

For the year ended December $31,2024,$ Fidelity Engineering reported pretax accounting income of $$984,000.$ Selected information for $2024$ from Fidelity$$s records follows:

Interest income on municipal governmental bonds $ $40,000$

Depreciation claimed on the $2024$ tax return in excess of depreciation on the income statement $64,000$

Carrying amount of depreciable assets in excess of their tax basis at year$-$end $104,000$

Warranty expense reported on the income statement $30,000$

Actual warranty expenditures in $202420,000$

Fidelity's income tax rate is $25\%.$ At January $1,2024,$ Fidelity's records indicated balances of zero and $$10,000$ in its deferred tax asset and deferred tax liability accounts, respectively.

Required:

Determine the amounts necessary to record income taxes for $2024,$ and prepare the appropriate journal entry.

What is Fidelity$$s $2024$ net income?Exercise $16-16($Algo$)$ Multiple differences; financial statement effects $[$LO$16-2,16-3,16-5]$

For the year ended December $31,2024,$ Fidelity Engineering reported pretax accounting income of $$984,000.$ Selected information for

$2024$ from Fidelity's records follows:

Interest income on municipal governmental bonds

Depreciation claimed on the $2024$ tax return in excess of depreciation on the income statement $$40,000$

Carrying amount of depreciable assets in excess of their tax basis at year$-$end $104,000$

Warranty expense reported on the income statement $30,000$

Actual warranty expenditures in $2024$

$20,000$

Fidelity's income tax rate is $25\%.$ At January $1,2024,$ Fidelity's records indicated balances of zero and $$10,000$ in its deferred tax asset

and deferred tax liability accounts, respectively.

Required:

Determine the amounts necessary to record income taxes for $2024,$ and prepare the appropriate journal entry.

What is Fidelity's $2024$ net income?

Complete this question by entering your answers in the tabs below.

Determine the amounts necessary to record income taxes for $2024.$

Note: Enter your answers in thousands rounded to $1$ decimal place. Amounts to be deducted should be indicated with a minus sign.