For the year ended December 31, 2021, Fidelity Engineering reported pretax accounting income of $988,000. Selected information for 2021 from Fidelitys records follows:

Interest income on municipal governmental bonds	$	44,000
Depreciation claimed on the 2021 tax return in excess of depreciation on the income statement		68,000
Carrying amount of depreciable assets in excess of their tax basis at year-end		112,000
Warranty expense reported on the income statement		32,000
Actual warranty expenditures in 2021		22,000

Fidelity's income tax rate is 25%. At January 1, 2021, Fidelity's records indicated balances of zero and $11,000 in its deferred tax asset and deferred tax liability accounts, respectively. Required: 1. Determine the amounts necessary to record income taxes for 2021, and prepare the appropriate journal entry. 2. What is Fidelitys 2021 net income?