For the year ended December 31, 2021, Fidelity Engineering reported pretax accounting income of $980,000. Selected information for 2021 from Fidelitys records follows:

Interest income on municipal governmental bonds	$	36,000
Depreciation claimed on the 2021 tax return in excess of depreciation on the income statement		60,000
Carrying amount of depreciable assets in excess of their tax basis at year-end		96,000
Warranty expense reported on the income statement		28,000
Actual warranty expenditures in 2021		18,000

Fidelity's income tax rate is 25%. At January 1, 2021, Fidelity's records indicated balances of zero and $9,000 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?

Required 1 GJ:

Journal entry worksheet:

1. record 2021 income taxes

Required 2:

What is Fidelitys 2021 net income?

Required 1 Calculation Required 1 GJ Required 2 Determine the amounts necessary to record income taxes for 2021. (Enter your answers in thousands ro place. Amounts to be deducted should be indicated with a minus sign.) Tax Rate % Tax $ Recorded as: $ 980 Pretax accounting income Permanent difference $ 980 Income subject to taxation Temporary difference Taxable income (income tax return) $ 980 x