For the year ended December 31, 2018, Fidelity Engineering reported pretax accounting income of $985,000. Selected...

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For the year ended December 31, 2018, Fidelity Engineering reported pretax accounting income of $985,000. Selected information for 2018 from Fidelity's records follows: 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 $33,600 57,400 89,000 27,200 16,800 Fidelity's income tax rate is 40%. At January 1, 2018, Fidelity's records indicated balances of zero and $12,640 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 % Таx $ Recorded as: Pretax accounting income 985.00 Permanent difference Income subject to taxation Temporary difference Taxable income (income tax return) X Required 1 Calculation Required 1 GJ > II 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 1 Record 2018 income taxes. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 GJ Required 2 What is Fidelity's 2018 net income? (Enter your answer in thousands and round your answer to 2 decimal places. Round intermediate calculations to two decimal places.) Net income < Required 1 GJ Required 2 > For the year ended December 31, 2018, Fidelity Engineering reported pretax accounting income of $985,000. Selected information for 2018 from Fidelity's records follows: 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 $33,600 57,400 89,000 27,200 16,800 Fidelity's income tax rate is 40%. At January 1, 2018, Fidelity's records indicated balances of zero and $12,640 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 % Таx $ Recorded as: Pretax accounting income 985.00 Permanent difference Income subject to taxation Temporary difference Taxable income (income tax return) X Required 1 Calculation Required 1 GJ > II 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 1 Record 2018 income taxes. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 GJ Required 2 What is Fidelity's 2018 net income? (Enter your answer in thousands and round your answer to 2 decimal places. Round intermediate calculations to two decimal places.) Net income < Required 1 GJ Required 2 >

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1 Particulars Amount In 000 Rate of Tax Tax Recorded as Pretax accoun... View the full answer