Blot Limited is a newly formed company that is considering entering the ink business. Blot plans to manufacture ink and sell it to printers. Due to the scarcity of businesses in the sector, Blot Limited was awarded a government grant to purchase the machinery it needed to start operations. The grant was awarded to Blot Limited on 1 January 20X6 for an amount of C250 000 and is conditional upon Blot manufacturing ink for an unbroken period of 3 years. Should Blot stop manufacturing before the end of the 3 year period, the grant will have to be repaid in full. Blot Limited purchased the requisite machinery on 1 January 20X6 for C 500 000. The machinery is expected to have a useful life of 4 years and a nil residual value. Due to unforeseen circumstances, Blot Limited had to stop manufacturing ink on 1 January 20X8. Required: a) Show the general journal entries the accountant needs to record for refunding the grant on 1 January 20X8 using the deferred income method. b) Show the general journal entries the accountant needs to record for refunding the grant on 1 January 20X8 using the deduction method