For the year ended December 31, 2018, Fidelity Engineering reported pretax accounting income of $990,000. Selected information for 2018 from Fidelity's records follows: Fidelity's income tax rate is 40%. At January 1, 2018, Fidelity's records indicated balances of zero and $13,040 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. 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.) For the year ended December 31,2018 , Fidelity Engineering reported pretax accounting income of $990,000. Selected information for 2018 from Fidelity's records follows: Fidelity's income tax rate is 40%. At January 1,2018 , Fidelity's records indicated balances of zero and $13,040 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. Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations to two decimal places. Enter your answers in thousands rounded to two decimal places (i.e. 1,230 should be entered as 1.23).) 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. 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.)