$3\mathrm{.}3$ Gallo Light began operations in $2024.$ The company sometimes sells used warehouses on an installment basis. In those cases,

Gallo Light reports income in its income statement in the year of the sale. In its income tax return, though, Gallo Light reports

installment income by the installment method. Installment income in $2024$ was $$150,000,$ which Gallo Light expects to collect

equally over the next three years. The tax rate is $25\%,$ but based on an enacted law, is scheduled to become $30\%$ in $2026.$

Gallo Light's pretax accounting income from the $2024$ income statement was $$832,000,$ which includes $$42,000$ of interest revenue

from an investment in municipal bonds. There were no differences between accounting income and taxable income other than

those described above.

Required:

Prepare the appropriate journal entry to record Gallo Light's $2024$ income taxes.

What is Gallo Light's $2024$ net income?

Complete this question by entering your answers in the tabs below.

Required $1$

Prepare the appropriate journal entry to record Gallo Light's $2024$ income taxes.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter your answers in

thousands rounded to $2$ decimal place $($i$.$e$.,5,500$ should be entered as $5\mathrm{.}50).$

Journal entry worksheet

$1$

Record the income taxes.

Note: Enter debits before credits.