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 Pacific's tax rate is 25%. At January 1, 2022, Pacific's records indicate a zero in deferred tax asset, and $5,000 in deferred tax liability respectively. What is Pacific's 2022 net income? O $ 683,000 $ 676,500 O $ 673,500 O $ 678,500