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 $$600,000,$ 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 $$823,000,$ which includes $$33,000$ 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?

Galio Light began operations in $2024.$ The company sometimes sells used warehouses on an installiment 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 instaliment method. Installment income in $2024$ was $\backslash (\backslash$$ $600,000\backslash ),$ which Gallo Light expects to collect equally over the next three years. The tax rate is $\backslash (25\backslash \%\backslash ),$ but based on an enacted law, is scheduled to become $\backslash (30\backslash \%\backslash )$ in $2026.$

Gollo Lighr's pretax accounung income from the $2024$ income statement was $\backslash (\backslash$$ $823,000\backslash ),$ which includes $\backslash (\backslash$$ $33,000\backslash )$ of interest revenue from an investment in muntcipal bonds. There were no differences between accounting income and taxable income other than those described above.

Required:

$1.$ Prepare the appropnate journal entry to record Gallo Lignt's $2024$ income taxes.

$2$ What is Galio Light's $2024$ net income?

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

Prepare the appropriato journal entry to record Gallo light's $2024$ income taxes.

Note: If nu $=$ntry is rpquired for a transaction$/$uvout$,$ select $"$No joumal entry required" in the first anceunt fiald. Enter your anawers in thousands raunded to $2$ decimal place $(\backslash ($ i $\mathrm{.}6,5,500\backslash )$ should be entered as $5\mathrm{.}50),$

Journal entry worksheet

$1$

Record the incame texes.

Nate: Erter debl's before clezits.