On July 1, 2019 Alora Inc. acquired a manufacturing plant in Nova Scotia for $1,800,000. The entry to record acquisition of the building has already been recorded.

The plant, employing 50 workers, began operations and is expected to be in operations for 20 years with no residual value. In connection with the purchase, the following government assistance was received:

i) Alora received $360,000 in government assistance. This amount does not need to be repaid as long as the plant operates for at least 10 years and employs an average of 25 people per year. Alora is optimistic about the prospects for the plant.

ii) Alora received a $40,000 subsidy for salary costs for the period from July 1, 2019 to June 31, 2021 as long as it meets the criteria in i) above re: hiring of 25 people.

Required:

You are to presume all criteria related to the government assistance have been met.

b) Record the 2019 entries related to receipt of the $40,000 presuming that on receipt, the initial credit is to a liability of deferred government assistance.