a) The deduction from assets method of accounting for government grant is used by Cellar Limited to record a government grant. The directors want to switch to the deferred income method because they assume the amount of income shown on the Statement of Comprehensive Income will increase and thus improved the overall performance of the company As an accounting major at university explain the accuracy of the directors assumption. (4 marks) b) Drax Hall Limited bought a cruise boat valued at $20,300,000 to operate on the south coast of Jamaica. The government has decided to assist the company by giving the company a cash grant to offset of 40% of the value of the cruise boat. The boat qualifies as a depreciating asset according to IAS 20. Government Grants and is depreciated over a period of 10 years. Its residual value is expected to be nil. Required: a) Prepare extracts of Essential Limited's Income statement and statement of financial position to account for the first three (3) years for the above items using the deferred income method (12 marks)