Requirement 1, 2

Saved 2 - Apply: Homework [due day 7] i 3 For the year ended December 31, 2021, Fidelity Engineering reported pretax accounting income of $1,012,000. Selected information for 2021 from Fidelity's records follows: Interest income on municipal governmental bonds $ 68,900 nits Depreciation claimed on the 2021 tax return in excess 92,000 of depreciation on the income statement Carrying amount of depreciable assets in excess 160, 000 of their tax basis at year-end Warranty expense reported on the income statement 44,000 Book Actual warranty expenditures in 2021 34, 000 Print Fidelity's income tax rate is 25%. At January 1, 2021, Fidelity's records indicated balances of zero and $17,000 in its deferred tax asset and deferred tax liability accounts, respectively. eferences Required: 1. Determine the amounts necessary to record income taxes for 2021, and prepare the appropriate journal entry 2. What is Fidelity's 2021 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 2021. (Enter your answers in thousands rounded to 1 decimal place. Amounts to be deducted should be indicated with a minus sign.) Tax Rate % Tax $ Recorded as: Pretax accounting income $ 1,012 Permanent difference Income subject to taxation Temporary difference Taxable income (income tax return) Required 1 G.J