A company (buyer) is looking to purchase a piece of equipment from a manufacturer (seller). The manufacturer is willing to provide a 0-Interest note for the purchase. The following information was provided to you for the purchase that occurred on November 1^st 2021:

Equipment Retail Price	$30,000
Useful life of equipment	5 Years
Term of Note	3 Years
Face Value of Note	$33,000
Borrowing Rate (buyer)	4%
Borrowing Rate (seller)	3%
Method of Depreciation	Double-Declining

1. It is expected that the equipment will have no value when the useful life is exhausted. The company has a December 31^st year end. Prepare all of the journal entries for the first year.
2. The company may be able to get a government grant to cover a portion of the acquisition costs. What options are there to account for this and how would it impact the financial statements?