Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences:

	($ in thousands)
	Situation
	1				2				3				4
Taxable income	$	160			$	292			$	348			$	488
Future deductible amounts		16								20				20
Future taxable amounts						16				16				104
Balance(s) at beginning of the year:
Deferred tax asset		2								28				4
Deferred tax liability						8				2

The enacted tax rate is 25%. Required: For each situation, determine the following: (Enter your answers in thousands rounded to one decimal place (i.e. 1,200 should be entered as 1.2). Negative amounts should be indicated by a minus sign. Leave no cell blank, enter "0" wherever applicable.)

• 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	$1,008
Permanent difference
Income subject to taxation	$1,008	x
Temporary difference
		x		=
		x		=
Taxable income (income tax return)	$1,008	x		=

• Record 2021 income taxes.

• Note: Enter debits before credits.

  Transaction	General Journal	Debit	Credit
  1

• 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