For the year ended December 31, 2021, Fidelity Engineering reported pretax accounting income of $1,036,000. Selected information for 2021 from Fidelitys records follows: Interest income on municipal governmental bonds $ 92,000 Depreciation claimed on the 2021 tax return in excess of depreciation on the income statement 116,000 Carrying amount of depreciable assets in excess of their tax basis at year-end 208,000 Warranty expense reported on the income statement 56,000 Actual warranty expenditures in 2021 46,000 Fidelity's income tax rate is 25%. At January 1, 2021, Fidelity's records indicated balances of zero and $23,000 in its deferred tax asset and deferred tax liability accounts, respectively. Required: 1. Determine the amounts necessary to record income taxes for 2021, and prepare the appropriate journal entry. 2. What is Fidelitys 2021 net income?

Complete this question by entering your answers in the tabs below.

Required 1 Calculation

Required 1 GJ

Required 2

Determine the amounts necessary to record income taxes for 2021. (Enter your answers in thousands rounded to 1 decimal place. Amounts to be deducted should be indicated with a minus sign.)

			Tax Rate %		Tax $	Recorded as:
Pretax accounting income	$1,036
Permanent difference
Income subject to taxation		x
Temporary difference
		x		=
		x		=
Taxable income (income tax return)		x		=

Transaction	General Journal	Debit	Credit
1

all journal entries muct come from this list:

Required 1 Calculation

Required 1 GJ

Required 2

What is Fidelitys 2021 net income? (Round intermediate calculations to 2 decimal places. Enter your answers in thousands (i.e., 5,500 should be entered as 5.5).)

Net income

=

No journal entry required

Accumulated depreciation

Cash

Deferred tax asset

Deferred tax liability

Depreciation expense

Equipment

Income tax expense

Income tax payable

Insurance expense

Interest expense

Interest payable

Interest receivable

Interest revenue

Inventory

Prepaid insurance

Retained earnings