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For the year ended December 31, 2013, Fidelity Engineering reported pretax accounting income of $977,000. Selected information for 2013 from Fidelity's records follows:
Fidelity's income tax rate is 40%. At January 1, 2013, Fidelity's records indicated balances of zero and $12,000 in its deferred tax asset and deferred tax liability accounts, respectively.
Determine the amounts necessary to record income taxes for 2013 and prepare the appropriate journal entry.
What is Fidelity's 2013 net income?
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