Gallo Light sometimes sells property on an installment basis. In those cases, Gallo Light reports income in its income statement in the year of the sale but reports installment income by the installment method on the tax return. Installment income in 2020 was $360 million, which Gallo Light expects to collect equally over the next four years. The tax rate is 25%, but based on an enacted law, is scheduled to become 35% in 2022.

Gallo Lights pretax accounting income for the 2020 income statement was $839 million. Of this amount, $49 million is non-taxable revenue from proceeds of a life insurance policy. There were no differences between accounting income and taxable income other than those described above and no cumulative temporary differences existed at the beginning of the year.

Required:

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

2. What is Gallo Light's net income?