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  3. for the yearended december 31, 2018, fidelity engi

For the yearended December 31, 2018, Fidelity Engineering reported pretax accounting income of $980.000. Selected...

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Accounting

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For the yearended December 31, 2018, Fidelity Engineering reported pretax accounting income of $980.000. Selected information for 2018 from Fidelity's records follows Interest income on municipal bonds Depreciation claimed on the 2018 tax return in excess $32,600 55,900 86,500 26,450 of depreciation on the incone statement Carrying amount of depreciable assets in excess of their tax basis at year-end Warranty expense reported on the income statenent Actual warranty expenditures in 2018 16, 300 Fidelit s income tax rate is 40%. At January 1, 2018, Fidelity's records indicated balances of zero and $12.240 n its deferred tax asset and deferred tax liablity accounts, respectively Required 1. Determine the amounts necessary to record income taxes for 2018 and prepare the appropriate journal entry 2. What is Fidelity's 2018 net income

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