In 2016, Red Bay Rentals collected rent revenue for 2017 occupancy. For income tax purposes, the rent is taxed when it is collected. For financial statement reporting, the rent is recorded as deferred revenue and then recognized as income in the period tenants occupy the rental property. The deferred portion of the rent collected in 2016 amounted to $40,000 at December 31, 2016. Red Bay Rentals had no temporary differences at the beginning of the year. Required: Assuming an income tax rate of 40% and 2016 income tax payable of $110,000, prepare the journal entry to record income taxes for 2016