For the year ended December $31,2024,$ Fidelity Engineering reported pretax accounting income of $$978,000.$ Selected information for $2024$ from Fidelity$$s records follows: Fidelity's income tax rate is $25\%.$ At January $1,2024,$ Fidelity's records indicated balances of zero and $$7,500$ 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?

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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.

Interest income on municipal governmental bonds $ $32,000$

Depreciation claimed on the $2024$ tax return in excess of depreciation on the income statement $58,000$

Carrying amount of depreciable assets in excess of their tax basis at year$-$end $88,000$

Warranty expense reported on the income statement $26,000$

Actual warranty expenditures in $202410,000$

Fidelity's income tax rate is $25\%.$ At January $1,2024,$ Fidelity's records indicated balances of zero and $$7,500$ 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?