E 16-14 For the year ended December 31, 2018, Fidelity Engineering reported pretax accounting income of $9.0 Selected information for 2018 from Fidelity's records follows: Multiple differences Interest income on municipal bonds Depreciation claimed on the 2018 tax return in excess of depreciation on the income statement 55,000 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 2018 $32,000 85,000 26,000 16,000 Fidelity's income tax rate is 40%. At January 1, 2018, Fidelity's records indicated balances of zero and si 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 cney 2. What is Fidelity's 2018 net income? te di