1. In 2019, Sato Ltd. received a grant for 2 million to defray the cost of purchasing research equipment for its manufacturing facility. The total cost of the equipment is 10 million.

   Prepare the journal entry to record this transaction if Sato uses the deferred revenue approach

   1. Debit Deprecation Expanse 10,000,000 Credit Accumulated Depreciation- Machinery 10,000,000

   2. Debit Equipment 2,000,000. Credit Accumulated Depreciation-Equipment 2,000,000.

   3. Debit Cash 2,000,000. Credit Deferred Grant Revenue 2,000,000.

   4. Debit Deprecation Expanse 2,000,000 Credit Accumulated Depreciation- Equipment2,000,000