,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 2023.

Gallo Light's pretax accounting income from the 2021 income statement was $837,000, which includes $47,000 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:

1. Prepare the appropriate journal entry to record Gallo Light's 2021 income taxes. Show calculations.

2. What is Gallo Light's 2021 net income?

(For both requirements, ro