Glanfield PEM Corp. (GPEM) designs and manufactures proton exchange membrane (PEM) fuel cell technology. Various levels of government have programs in place to encourage the development of solutions for a clean energy future. In 2018, GPEM took advantage of these incentives and constructed a new $4 million research facility. GPEM received the government subsidies listed below:
i. A $20,000 rebate of 2018’s property taxes. GPEM had previously paid the full amount of the $80,000 assessment.
ii. A $200,000, interest-free, forgivable loan to assist with the construction of the research facility. The loan was repayable at $40,000 per annum with the first payment due January 1, 2020; however, installments were forgivable providing that the company was actively engaged in PEM research for the immediately preceding year.
iii. GPEM was eligible for a partial rebate of sales tax paid on materials used in the construction of the research facility. The rebate was for 4.0% of the materials cost of $3.0 million.
The estimated useful life and residual value of the research facility were 20 years and $400,000 respectively. GPEM prepared its financial statements in accordance with IFRS, and depreciated its long-term assets on a straight-line basis. Adjusting entries were only prepared at year-end.

Required:
Gross method
a. Prepare journal entries to record the receipt of the three government grants.
b. Prepare the journal entry(ies) arising from the above transactions for GPEM’s December 31, 2020 year-end.

Net method
c. Prepare journal entries to record the receipt of the three government grants.
d. Prepare the journal entry(ies) arising from the above transactions for GPEM’s December 31, 2020 , year-end.