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Please provide the answers in a Clear Manner. CH 3 For the year ended December 31, 2021, Fidelity Engineering reported pretax accounting income of $996,000.
Please provide the answers in a Clear Manner.
CH 3 For the year ended December 31, 2021, Fidelity Engineering reported pretax accounting income of $996,000. Selected information for 2021 from Fidelity's records follows: $ 52,000 co 76,000 olnts Interest income on municipal governmental bonds Depreciation claimed on the 2021 tax return in exce33 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 128,000 eBook 36,000 26,000 Print References Fidelity's income tax rate is 25%. At January 1, 2021. Fidelity's records indicated balances of zero and $13,000 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 G) 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 on Pecorded as: 3 Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 G) Required 2. 20 polnts 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.) eBook Tax Rate % Tax $ Recorded as: Print $ 996 Pretax accounting income Permanent difference References x Income subject to taxation Temporary difference Taxable income (income tax return) Il Required 16 3 Required 1 Calculation Required 1 GJ Required 2 Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations to 2 decimal places. Enter your answers in thousands (i.e., 5,500 should be entered as 5.5).) 20 polnts View transaction list eBook Print Journal entry worksheet References
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