For the year ended december 31, 2018, fidelity engineering reported pretax accounting income of $996,000. selected information for 2018 from fidelity’s records follows: interest income on municipal bonds $ 35,800 depreciation claimed on the 2018 tax return in excess of depreciation on the income statement 60,700 carrying amount of depreciable assets in excess of their tax basis at year-end 94,500 warranty expense reported on the income statement 28,850 actual warranty expenditures in 2018 17,900 fidelity's income tax rate is 40%. at january 1, 2018, fidelity's records indicated balances of zero and $13,520 in its deferred tax asset and deferred tax liability accounts, respectively. required: 1. determine the amounts necessary to record income taxes for 2018 and prepare the appropriate journal entry. 2. what is fidelity’s 2018 net income?