or 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?

Tax Rate % Tax $ Recorded as: View transaction list Z S 1,036 Pretax accounting income Permanent difference Journal entry worksheet $ 1,036 X Record 2021 income taxes. Income subject to taxation Temporary difference X Note: Enter debits before credits. X Transaction General Journal Debit Credit 1 Taxable income income tax return) $ 1,036 Record entry Clear entry View general journal 3 LAILUIGLIUI What is Fidelity's 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