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:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
7
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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