At 1 january 20x3, best result ltd receives a government grant of %5 million in respect of a purchase of equipment that costs $6 million for a research project. The useful life and residual value of the equipment are estimated to be 10 years and nil, respectively. The equipment is depreciated using the straight-line method. The company's accounting policy is to deduct the grant initially from the cost of the related assets.

However, best result ltd discontinued the research project and used the equipment for other purposes at 1 January 20x4. On the same date, the company repaid the grant of $5 million to the government in accordance with the contractual terms of the grant.

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Show all the relevant journal entries in 20x4.