Blossom Enterprises purchased a new piece of equipment for its factory under a new government incentiv eprogram in exchange for cash. The equipment cost $$153,000$ and had an estimated useful life of ten years. The program was intended to encourage companies to invest in new innovative technologies. The new piece of equipment purchased by blossom qualified for government grant of $$29,400.$ Blossom collected the grant after providing proof of the purchase.

$1.$ Assuming that Blossom uses the cost reduction method, prepare the journal entries to record the purchase of the equipment and the recipt of the government grant.

$2.$ Assuming that Blossom uses the deferral method, prepare the journal entries to record the purchase of the equipment, the receipt of the grant, and the adjusting entry for the grant required at the end of the first year $($assuming the equipment was purchased on the first day of the fiscal year$)$