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 $$1,020,000.$ Selected information

$125$

for $2024$ from Fidelity's records follows:

points

Interest income on municipal governmental bonds

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

$$76,000$

$100,000$

$176,000$

$48,000$

$38,000$

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 $2024$

Fidelity's income tax rate is $25\%.$ At January $1,2024,$ Fidelity's records indicated balances of zero and $$19,000$ 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.

References

What is Fidelity's $2024$ net income?

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

Required $1$

General

Required $2$

Calculation

Journal

$($a$)$

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.

$\backslash$table$[[$Description$,,$mount,$x,$Tax Rate,,Tax,Recorded as:$],[$Pretax accounting income,$$,1,020\mathrm{.}0,,,,,],[$Permanent difference$],[$Warranty expense$],[$Income subject to taxation,$$,1,0200,x,,=,,$Deferred tax asset$],[$Temporary difference$],[$Depreciation$,,,x,,=,,$Deferred tax asset$],[$Depreciation$,,,x,,=,,],[$Taxable income $($income tax return$),$$$,1,020,0,x,,=,,]]$