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For the year ended December 31, 2024, Fidelity Engineering reported pretax accounting income of $988,000. Selected information for 2024 from Fidelitys records follows: Interest income
For the year ended December 31, 2024, Fidelity Engineering reported pretax accounting income of $988,000. Selected information for 2024 from Fidelitys records follows:
Interest income on municipal governmental bonds | $ 44,000 |
---|---|
Depreciation claimed on the 2024 tax return in excess of depreciation on the income statement | 68,000 |
Carrying amount of depreciable assets in excess of their tax basis at year-end | 112,000 |
Warranty expense reported on the income statement | 32,000 |
Actual warranty expenditures in 2024 | 22,000 |
Fidelity's income tax rate is 25%. At January 1, 2024, Fidelity's records indicated balances of zero and $11,000 in its deferred tax asset and deferred tax liability accounts, respectively.
Required:
Determine the amounts necessary to record income taxes for 2024, and prepare the appropriate journal entry.
What is Fidelitys 2024 net income?
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