3. Mozambique Ltd. received a $ 250,000 grant from the federal government to help buy equipment as an incentive for them to establish manufacturing operations in Ottawa. Assuming that Mozambique uses the cost reduction method for such transactions, they should record this transaction as a

a) memo entry only.

b) credit to Deferred Revenue for $ 250,000.

c) credit to Equipment for $ 250,000.

d) credit to Contribution Revenue for $ 250,000.