Current Attempt in Progress

Crane Ltd$.$ received a $$252000$ grant from the federal government to help buy equipment as an incentive for them to establish manufacturing operations in Ottawa. The company assumes equipment has a $10-$year useful life and uses straight$-$line depreciation. If Crane uses the deferral method for such transactions, entries in year one would include

credit to Revenue$-$Government Grants $$252000.$

debit to Deferred Revenue$-$Government Grants $$25200.$

credit to Accumulated Depreciation $$25200.$

debit to Equipment $$252000.$