For the year ended December 31, 2018, Fidelity Engineering reported pretax accounting income of $977.00 E 16-14 Multiple differences Selected information for 2018 from Fidelity's records follows: 32,000 55,000 LO16-4, LO16-6 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 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 S12000 in its deferred tax asset and deferred tax liability accounts, respectively. Required: 2. What is Fidelity's 2018 net income? Allmond Corporation, organized on January 3 201 1. Determine the amounts necessary to record income taxes for 2018, and prepare the appropriate journal entry 16-15