For the year ended December $31,2024,$ Fidelity Engineering reported pretax accounting income of $$1,024,000.$ 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

$$80,000$

$104,000$

$184,000$

$50,000$

$40,000$

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 $$20,000$ 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.

Required $1$

General

Journal

Required $2$

Calculation

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$,$Amount,$x,$Tax Rate,,Tax,Recorded as:$],[$Pretax accounting income,$$1,024\mathrm{.}0,,,,,],[$Permanent difference$],[],[$Income subject to taxation,,$x,,=,,],[$Temporary difference$],[P,,x,,=,,],[F,,x,,=,,],[$Taxable income $($income tax return$),,x,,=,,]]$

For the year ended December $31,2024,$ Fidelity Engineering reported pretax accounting income of $$1,024,000.$ 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

$$80,000$

$104,000$

$184,000$

$50,000$

$40,000$

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 $2024$

$40,600$

Fidelity's income tax rate is $25\%.$ At January $1,2024,$ Fidelity's records indicated balances of zero and $$20,000$ 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.

General

Journal

Required $2$

Prepare the appropriate journal entry.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round intermediate calculations to $2$ decimal places. Enter your answers in thousands $($i$.$e$.,5,500$ should be entered as $5\mathrm{.}5).$

Journal entry worksheet

$1$

Record $2024$ income taxes.

Note: Enter debits before credits.

$\backslash$table$[[$Transaction$,$General Journal,Debit,Credit$],[1,,,],[,,,],[,,,],[,,,]]$