Lee Company received an HK$1,800,000 subsidy from the government to purchase manufacturing equipment on January, 2, 2015. The equipment has a cost of HK$3,000,000, a useful life a six years, and no salvage value. Lee depreciates the equipment on a straight-line basis.

If Lee chooses to account for the grant as deferred revenue, the grant revenue recognized will be:

Select one:

a. HK$500,000 per year for the years 2015-2020.

b. Zero in the first year of the grant's life.

c. HK$300,000 per year for the years 2015-2020.

d. $HK1,800,000 in 2015.