Exercise 16-14 Multiple differences [LO16-4, 16-6] For the year ended December 31, 2018, Fidelity Engineering reported pretax accounting income of $988,000. Selected information for 2018 from Fidelity's records follows Interest income on municipal bonds Depreciation claimed on the 2018 tax return in excess $34,200 58,300 90,500 27,650 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 17,100 Fidelity's income tax rate is 40%. At January 1, 2018, Fidelity's records indicated balances of zero and $12,880 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? 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 S Recorded as: Pretax accounting income Permanent difference $ 988.00 $ 988.00x Income subject to taxation Temporary difference Taxable income (income tax return) $ 988.00 x