For the year ended December 31, 2024, Fidelity Engineering reported pretax accounting income of $1,024,000. Selected informati 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 $20,000 in its deferred tax as 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 General Journal View transaction list Prepare the appropriate journal entry. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations to 2 decimal places. Enter your answers in thousands (i.e., 5,500 should be entered as 5.5). < Journal entry worksheet 1 Required 2 Record 2024 income taxes. Note: Enter debits before credits. Transaction $ 80,000 104,000 184,000 50,000 40,000 General Journal Debit Credit
For the year ended December 31, 2024, Fidelity Engineering reported pretax accounting income of $1,024,000. Selected informati 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 $20,000 in its deferred tax as 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 General Journal View transaction list Prepare the appropriate journal entry. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations to 2 decimal places. Enter your answers in thousands (i.e., 5,500 should be entered as 5.5). < Journal entry worksheet 1 Required 2 Record 2024 income taxes. Note: Enter debits before credits. Transaction $ 80,000 104,000 184,000 50,000 40,000 General Journal Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:For the year ended December 31, 2024, Fidelity Engineering reported pretax accounting income of $1,024,000. 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 $20,000 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
View transaction list
Prepare the appropriate journal entry.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate
calculations to 2 decimal places. Enter your answers in thousands (i.e., 5,500 should be entered as 5.5).
1
Required 2
Journal entry worksheet
Record 2024 income taxes.
Note: Enter debits before credits.
Transaction
1
$ 80,000
104,000
184,000
50,000
40,000
General Journal
Debit
Credit
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