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