Assume Lowes began business in $2021.$ Lowes sometimes sells used distribution centers on an installment basis. In those cases, Lowes reports income in its income statement in the year of the sale. In its income tax return, however, Lowes reports installment income by the installment method. Installment income in $2021$ was $$540,000,$ which Lowes 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 $2023.$

Lowes' pretax accounting income from the $2021$ income statement was $$825,000,$ which includes $$35,000$ of interest revenue. This investment revenue comes from an investment it has in City of Sheboygan 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 Lowes' $2021$ income taxes. Show calculations.

$2.$ What is Lowes' $2021$ net income?