Gallo Inc. began operations in 2015. The company sometimes sells used equipment on an installment basis. For installment sales, Gallo reports sales revenue on its income statement in the year of the sale. On its income tax return, Gallo reports the income as the cash is received. Installment sales in 2015 were $90,000, which Gallo expects to collect equally over the next three years (2016-2018). The current tax rate is 30%, but based on an enacted law, it is scheduled to become 35% in 2017. At the end of 2015, Gallo was aware of the scheduled tax rate change. Gallo's pretax accounting income on its 2015 income statement was $830,000. Included in this amount is $40,000 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 journal entry to record Gallo's 2015 income taxes. Show calculations. What is Gallo's 2015 Net Income (after taxes)? Assume that Gallo had pretax accounting income of $650,000 in 2016. The only difference between book and taxable income is the installment sale that originated in 2015. The 2015 tax rate was 30% as expected (it is still expected to change to 35% in 2017 and 2018). Prepare the journal entry to record Gallo's 2016 income taxes