For the year ended December 31, 2024, Fidelity Engineering reported pretax accounting income of $1,028,000. Selected information for 2024 from Fidelitys records follows:

Interest income on municipal governmental bonds$ 84,000Depreciation claimed on the 2024 tax return in excess of depreciation on the income statement108,000Carrying amount of depreciable assets in excess of their tax basis at year-end192,000Warranty expense reported on the income statement52,000Actual warranty expenditures in 202442,000

Fidelity's income tax rate is 25%. At January 1, 2024, Fidelity's records indicated balances of zero and $21,000 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 Fidelitys 2024 net income?