Ivanhoe Ltd$.$ received a $$265000$ 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 Ivanhoe uses the deferral method for such transactions, entries in year one would include

debit to Equipment $$265000.$

debit to Deferred Revenue$-$Government Grants $$26500.$

credit to Revenue$-$Government Grants $$265000.$

credit to Accumulated Depreciation $$26500.$