Healthlink Inc. (HI) received a grant from the Canadian government in the current fiscal year ending December 31, 2020. The $300,000 grant is intended to offset specific research costs in the development of a pharmaceutical drug, to be incurred in 2021. HI is entitled to this grant if it can begin clinical trials related to this drug by the end of 2021, and management is certain that this requirement will be met. HI reports under IFRS.

What journal entry should HI record for the year ended December 31, 2020, with respect to this government grant?

Question 3 options:

A	DR Cash 300,000; CR Research expense 300,000
B	DR Cash 300,000; CR Grant revenue 300,000
C	DR Cash 300,000; CR Deferred grant revenue 300,000
D	No journal entry is required.