Apollo Inc. began operations in 2016. Ty recognizes installment income for financial reporting purposes in the year of the sale. For tax purposes, installment income is reported by the installment method. 2016 installment income was $660,000 and will be collected over the next three years. Scheduled collections and enacted tax rates for 2017-2019 are as follows:

2017 $240,000 30%

2018 $220,000 35%

2019 $200,000 35%

Pretax accounting income for 2016 was $810,000 which includes interest revenue of $10,000 from municipal bonds. The enacted tax rate for 2016 is 30%. What is the journal entry for year 2016.

Options: (Write N/A if no journal entry required to that account)

Debit Income Tax Expense

Debit Deferred Tax Asset

Credit Income Tax Payable

Credit Deferred Tax Liability