For the year ended December 31, 2024, Fidelity Engineering reported pretax accounting income of $984,000. Selected information for 2024 from Fidelity's records follows: Interest income on municipal governmental bonds $ 40,000 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 64,000 104,000 Warranty expense reported on the income statement 30,000 20,000 Actual warranty expenditures in 2024 Fidelity's income tax rate is 25%. At January 1, 2024, Fidelity's records indicated balances of zero and $10,000 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.
For the year ended December 31, 2024, Fidelity Engineering reported pretax accounting income of $984,000. Selected information for 2024 from Fidelity's records follows: Interest income on municipal governmental bonds $ 40,000 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 64,000 104,000 Warranty expense reported on the income statement 30,000 20,000 Actual warranty expenditures in 2024 Fidelity's income tax rate is 25%. At January 1, 2024, Fidelity's records indicated balances of zero and $10,000 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.
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
9th Edition
ISBN:9781305635937
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter16: Financial Planning And Forecasting
Section: Chapter Questions
Problem 13P: ADDITIONAL FUNDS NEEDED Morrissey Technologies Inc.s 2016 financial statements are shown here....
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