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: $32,400 55,600 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 86,000 26,300 16,200 Fidelity's income tax rate is 40%. At January 1, 2018, Fidelity's records indicated balances of zero and $12,160 in its deferred t 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. Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 G Required 2 Determine the amounts necessary to record income taxes for 2018. (Enter your answers in thousands rounded to two decimal places (i.e. 1,230 should be entered as 1.23). Amounts to be deducted should be indicated with a minus sign.) Tax Rate % Tax $ Recorded as: $ 979.00 Pretax accounting income Permanent difference $ 979.00 Income subject to taxation Temporary difference Taxable income (income tax return) $ 979.00 Required 1 Calculation Required 1 GJ > Journal entry worksheet Record 2018 income taxes. Note: Enter debits before credits. General Journal Debit Credit Event 1 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. Required 1 Calculation Required 1 GJ Required 2 What is Fidelity's 2018 net income? (Enter your answer in thousands and round your answer to 2 decimal places. Round intermediate calculations to two decimal places.) Net income