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In 2021, Entity A proposes an environmental clean-up project for a river. The government supports this project and gives Entity A a 1M monetary grant

In 2021, Entity A proposes an environmental clean-up project for a river. The government supports this project and gives Entity A a 1M monetary grant conditioned that the money will only be spent on the proposed project. The proposed project is expected to take about 2 years to complete. Entity A starts the clean-up project in 2022. How should Entity A recognize income from the government grant?

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