For the year ended December Fidelity Engineering reported pretax accounting income of $ Selected information
for from Fidelity's 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 Fidelity's net income?
Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Determine the amounts necessary to record income taxes for
Note: Enter your answers in thousands rounded to decimal place. Amounts to be deducted should be indicated with a minus sign.
