Reference no: EM131221707
For the year ended December 31, 2016, Fidelity Engineering reported pretax accounting income of $978,000. Selected information for 2016 from Fidelity’s records follows: Interest income on municipal bonds $ 32,200 Depreciation claimed on the 2016 tax return in excess of depreciation on the income statement 55,300 Carrying amount of depreciable assets in excess of their tax basis at year-end 85,500 Warranty expense reported on the income statement 26,150 Actual warranty expenditures in 2016 16,100 Fidelity's income tax rate is 40%. At January 1, 2016, Fidelity's records indicated balances of zero and $12,080 in its deferred tax asset and deferred tax liability accounts, respectively.
Required: 1. Determine the amounts necessary to record income taxes for 2016 and prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands rounded to two decimal places (i.e. 1,230 should be entered as 1.23). Interest on municipal bonds? Depreciation? Warranty expense?
1. Record 2016 income taxes.
2. What is Fidelity’s 2016 net income? (Enter your answer in thousands and round your answer to 2 decimal places.)
|
Receive smallville acceptance of the acme
: Despite these defects, ACME did in fact receive Smallville's acceptance of the ACME offer on May 17th. Please respond to the following questions in your posts and respond to other students' original posts.
|
|
Comprehensive problem
: Whitelands Consulting, Inc. began business on January 1, 2015. It sold $100 of stock to its investors on that day in exchange for cash. This American company lists and trades its stock on the New York Stock Exchange. Identify Whitelands as a sole pro..
|
|
Compute the amount of pension expense
: Pension Expense and Liability On December 31, 2013, Robey Company accumulated the following information for 2013 in regard to its defined benefit pension plan: Compute the amount of Robey's pension expense for 2013. Prepare all the journal entries re..
|
|
Describe the appropriate accounting treatment
: Selected financial information about income statement accounts for the Snowman Company is presented below for the year ended December 31, 2014. describe the appropriate accounting treatment. For each item determine whether the entry is a part of disc..
|
|
Prepare the appropriate journal entry
: For the year ended December 31, 2016, Fidelity Engineering reported pretax accounting income of $978,000. Selected information for 2016 from Fidelity’s records follows: Determine the amounts necessary to record income taxes for 2016 and prepare the a..
|
|
Determine net income for its first year of operations
: Stanton Corp. began operations on January 1, 2016. The statement of cash flows for the first year reported dividends paid of $221,000. The balance sheet at the end of the first year reported $65,000 in dividends payable and $521,000 in ending retaine..
|
|
What is the required amount of each deposit
: Use the following 8% interest factors. Present Value of Ordinary Annuity Future Value of Ordinary Annuity 7 periods 5.2064 8.92280 8 periods 5.7466 10.63663 9 periods 6.2469 12.48756 Korman Company wishes to accumulate $1,000,000 by May 1, 2025 by ma..
|
|
Compute the weighted-average interest rate
: Indigo Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,836,000 on March 1, $1,236,000 on June 1, and $3,038,370 on December 31. Compute the weighted-average interest rate use..
|
|
Understand break-even analysis
: Jordan and Taylor are beginning to understand break-even analysis. Selling price to Yumminess at $10 per tin. The cost is $8 per tin, which includes $6 of direct material and $1.50 of direct labor. Annual manufacturing overhead is estimated at $100,0..
|