{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-28T10:15:21-04:00", "answer_date": "2024-05-28 10:15:21", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1833343", "url": "\/study-help\/questions\/for-the-year-ended-december-31-2021-fidelity-engineering-reported-1833343", "question_creation_date_js": "2024-05-28T10:15:21-04:00", "question_creation_date": "May 28, 2024 10:15 AM", "meta_title": "[Solved] For the year ended December 31, 2021, Fid | SolutionInn", "meta_description": "Answer of - For the year ended December 31, 2021, Fidelity Engineering reported pretax accounting income of $1,056,000. Selected i | SolutionInn", "meta_keywords": "year,ended,december,31,2021,fidelity,engineering,reported,pretax,accounting,income,$1,056,000", "question_title_h1": " For the year ended December 31, 2021, Fidelity Engineering reported pretax accounting income of $1,056,000. Selected information for 2021 from Fidelity's records follows: Interest", "question_title": " For the year ended December 31, 2021, Fidelity Engineering reported pretax", "question_title_for_js_snippet": "For the year ended December 31, 2021, Fidelity Engineering reported pretax accounting income of $1,056,000 Selected information for 2021 from Fidelity's records follows Interest income on municipal governmental bonds Depreciation claimed on the 2021 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 2021 $112,000 136,000 248,000 66,000 56,000 Fidelity's income tax rate is 25 At January 1, 2021, Fidelity's records indicated balances of zero and $28,000 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 Fidelity's 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 ) Pretax accounting income Permanent difference Tax Rate Tax $ $ 1,056 Income subject to taxation Temporary difference $ 1,056 x X X Taxable income (income tax return) 1,056 x Required 1 Calculation Recorded as Required 1 GJ ", "question_description": "\"image\"image\"image", "transcribed_text": "For the year ended December 31, 2021, Fidelity Engineering reported pretax accounting income of $1,056,000. Selected information for 2021 from Fidelity's records follows: Interest income on municipal governmental bonds Depreciation claimed on the 2021 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 2021 $112,000 136,000 248,000 66,000 56,000 Fidelity's income tax rate is 25%. At January 1, 2021, Fidelity's records indicated balances of zero and $28,000 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 Fidelity's 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.) Pretax accounting income Permanent difference Tax Rate % Tax $ $ 1,056 Income subject to taxation Temporary difference $ 1,056 x X = X = Taxable income (income tax return) 1,056 x = Required 1 Calculation Recorded as: Required 1 GJ >", "related_book": { "title": "Accounting Principles", "isbn": "1119491630, 978-1119491637, 978-0470534793", "edition": "10th Edition", "authors": "Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/54.jpg", "uri": "\/textbooks\/accounting-principles-10th-edition-54", "see_more_uri": "" }, "free_related_book": { "isbn": "0970394802", "uri": "\/textbooks\/the-guide-to-translation-and-localization-preparing-products-for-foreign-markets-3rd-edition-978-0970394804-205363", "name": "The Guide To Translation And Localization Preparing Products For Foreign Markets", "edition": "3rd Edition" }, "question_posted": "2024-05-28 10:15:21", "see_more_questions_link": "\/study-help\/questions\/business-finance-2024-September-22", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/questions\/build-a-circuit-on-a-breadboard-from-the-circuit-diagram-375569", "description": "Build a circuit on a breadboard from the circuit diagram of the two loop-network circuits: www R", "stars": 3 }, { "url": "\/a-highyield-bond-has-the-following-features-principal-amount-1000", "description": "A high-yield bond has the following features: Principal amount....... $1,000 Interest rate (the coupon) ....... 11.50% Maturity....... 10 years Sinking fund....... 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