Exercise 16-14 Multiple differences [L016-4, 16-6 For the year ended December 31, 2018, Fidelity Engineering reported pretax accounting income of $979,000. Selected information for 2018 from Fidelity's records follows: Interest income on municipal bonds Depreciation claimed on the 2018 tax return in excess $32,400 5, 600 of depreciation on the income statement Carrying anount of depreciable assets in excess 86,000 26,300 16,200 of their tax basis at year-end Warranty expense reported on the income statement Actual warranty expenditures in 2018 Fidelity's income tax rate is 40%. At January 1 2018, Fidelity's records indicated balances of zero and $12.160 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 o deprciation on the income statement 5600 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 86,000 26,300 16,200 Fidelity's income tax rate is 40%. At January 1, 2018, Fidelity's records indicated balances of and deferred tax liability accounts, respectively. Required: 1. Determine the amounts necessary to record income taxes for 2018 and prepare the appr 2. What is Fidelity's 2018 net income? Complete this question by entering your answers in the tabs below. Required 1 CalculationRequired 1 GJ Rquired 2 What is Fidelity's 2018 net income? (Enter your answer in thousands and round your answer t intermediate calculations to two decimal places.) Net income K Required 2 Required 1 GJ