For the year ended Dec. 31, 2022, Pacific Engineering reports pretax accounting income of 900,000. Selected information for 2022 from Pacific records follows:

Interest income on municipal bonds 23,000

Penalties expense due to air pollution 9,000

Carrying amount of depreciable assets in excess of their tax basis at year-end 88,000

Litigation expense on the income statement 25,000

Actual litigation expenditures 10,000

Pacifics tax rate is 25%. At January 1, 2022, Pacifics records indicate a zero in deferred tax asset, and $5,000 in deferred tax liability respectively.

What is Pacifics 2022 net income?

$ 678,500

$ 673,500

$ 676,500

$ 683,000