For the year ended December 31, 2024, Fidelity Engineering reported pretax accounting income of $1,036,000. Selected information for 2024 from Fidelity's records follows: Interest income on municipal governmental bonds $ 92,000 Depreciation claimed on the 2024 tax return in excess of depreciation on the income statement Carrying amount of depreciable assets in excess of their tax basis at year-end Warranty expense reported on the income statement 116,000 208,000 56,000 46,000 Actual warranty expenditures in 2024 Fidelity's income tax rate is 25%. At January 1, 2024, Fidelity's records indicated balances of zero and $23,000 in its deferred tax asset and deferred tax liability accounts, respectively. Required: 1. Determine the amounts necessary to record income taxes for 2024, and prepare the appropriate journal entry. 2. What is Fidelity's 2024 net income?