For the year ended December 31, 2021, Star Engineering Inc. reported a pretax accounting income of $900,000. Additional information related to Star Engineering Inc. is as follows. Interest income on Municipal Bonds $30,000 Depreciation claimed on the 2021 tax return in excess of depreciation on the income $5,000 statement Carrying value of depreciable assets in excess of tax basis at year-end. $50,000 Warranty expenses reported on the income statement $25,000 Actual warranty expenses in 2021 $15,000 Star Engineering Inc.'s income tax rate is 40%. On January 1, 2021, the company records indicated zero and S10,000 in its deferred tax asset and deferred tax liability accounts, respectively. You are required to 1. Determine the amount necessary to record income taxes for 2021 and prepare appropriate journal entry 2. What is Star Engineering Ine's net income for 2021