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Complete this question by entering your answers in the tabs below. Required 1 Calculation General Journal Determine the amounts necessary to record income taxes for 2024. Note: Enter your answers in thousands rounded to 1 decimal place. Amounts to be deducted should be indicated with a minus sign. Description Pretax accounting income Permanent difference Required 2 Income subject to taxation Temporary difference Taxable income (income tax return) Amount $ 1,048.0 $ 1,048.0 x X X $ 1,048.0 X Tax Rate Tax Recorded as:

Complete this question by entering your answers in the tabs below. Required 1 Calculation General Journal Determine the amounts necessary to record income taxes for 2024. Note: Enter your answers in thousands rounded to 1 decimal place. Amounts to be deducted should be indicated with a minus sign. Description Pretax accounting income Permanent difference Required 2 Income subject to taxation Temporary difference Taxable income (income tax return) Amount $ 1,048.0 $ 1,048.0 x X X $ 1,048.0 X Tax Rate Tax Recorded as:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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For the year ended December 31, 2024, Fidelity Engineering reported pretax accounting Income of $1,048,000. Selected Information for 2024 from Fidelity's records follows: Interest income on municipal governmental bonds Depreciation claimed on the 2024 tax return in excess 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 2024 Fidelity's income tax rate is 25%. At January 1, 2024, Fidelity's records indicated balances of zero and $26,000 in its deferred tax asset and deferred tax liability accounts, respectively. Required: 1. Determine the amounts necessary to record income taxes for 2024, and prepare the appropriate Journal entry. 2. What is Fidelity's 2024 net Income? Complete this question by entering your answers in the tabs below. Required 1 Calculation General Journal Description Pretax accounting income Permanent difference Required 2 Income subject to taxation Temporary difference Determine the amounts necessary to record income taxes for 2024. Note: Enter your answers in thousands rounded to 1 decimal place. Amounts to be deducted should be indicated with a minus sign. Taxable income (income tax return) Amount * $ 1,048.0 $ 1,048.0 X X X $ 1,048.0 X Tax Rate < Required 1 Calculation = $ 104,000 128,000 232,000 62,000 52,000 Tax Recorded as: General Journal > *
Transcribed Image Text:For the year ended December 31, 2024, Fidelity Engineering reported pretax accounting Income of $1,048,000. Selected Information for 2024 from Fidelity's records follows: Interest income on municipal governmental bonds Depreciation claimed on the 2024 tax return in excess 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 2024 Fidelity's income tax rate is 25%. At January 1, 2024, Fidelity's records indicated balances of zero and $26,000 in its deferred tax asset and deferred tax liability accounts, respectively. Required: 1. Determine the amounts necessary to record income taxes for 2024, and prepare the appropriate Journal entry. 2. What is Fidelity's 2024 net Income? Complete this question by entering your answers in the tabs below. Required 1 Calculation General Journal Description Pretax accounting income Permanent difference Required 2 Income subject to taxation Temporary difference Determine the amounts necessary to record income taxes for 2024. Note: Enter your answers in thousands rounded to 1 decimal place. Amounts to be deducted should be indicated with a minus sign. Taxable income (income tax return) Amount * $ 1,048.0 $ 1,048.0 X X X $ 1,048.0 X Tax Rate < Required 1 Calculation = $ 104,000 128,000 232,000 62,000 52,000 Tax Recorded as: General Journal > *
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