Consider the following two scenarios:

Case A On $27$ February $20$X$7,$ JJJ Inc. upgraded its windows and doors in order to make the building green$-$certified. The upgrades have a $20-$year useful life. JJJ will receive a $35\%$ rebate on total cost if it can demonstrate reduced utilities draw by $50\%$ over a $5-$year period. The funds are received up front, upon submission of the costs. A report is filed annually over the next $5$ years. Total amount spent on upgrades: $$5,040,000.$

Case B RBH Inc. was provided with a $$330,000$ forgivable loan to help offset increased sick pay that was mandated by the government. The loan is intended to provide relief for the first $2$ years of the program.

Required:

Prepare the journal entries:

Under both the net and the deferral method

If it is netted against expenses or recorded as income

$($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)1.$Record the $$5,040,000$ cost incurred on building upgrades under the net method. $2.$Record the $35\%$ rebate on total cost of building upgrades under the net method. $3.$Record the depreciation expense on the building upgrades under the net method. $4.$Record the $$5,040,000$ cost incurred on building upgrades under the deferral method. $5.$Record the $35\%$ rebate on total cost of building upgrades under the deferral method$\mathrm{.}6.$Record the depreciation expense on the building upgrades under the deferral method. $7.$Record the amortization of $35\%$ goverment grant if the building upgrades has a useful life of $20$ years and it is netted against expenses. $8.$ Record the $$330,000$ forgivable loan to help offset increased sick pay that was mandated by the government.