Pearl Limited was attracted to the Town of Mornington by the towns municipal industry commission. Mornington donated a plant site to Pearl, and the provincial government provided $159,000 toward the cost of the new manufacturing facility. The total cost of plant construction came to $369,000, and it was ready for use in early October 2020. Pearl expects the plant to have a useful life of 15 years before it becomes obsolete and is demolished. The company uses the straight-line method of depreciation for buildings and is required to include the plant in Class 6 (10% rate) for tax purposes.

A) Prepare the entries that are required in 2020 to record the payment to the contractor for the building and the receipt of the provincial government assistance. Assume that the company treats the assistance as a reduction of the assets cost. Also prepare any adjusting entries that are needed at the companys year ends, December 31, 2020 and 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)

B) Prepare the entries that are required in 2020 to record the payment to the contractor for the building and the receipt of the provincial government assistance. Assume that the company treats the government assistance as a deferred credit. Also prepare any adjusting entries that are needed at the company's year ends, December 31, 2020 and 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)

C)If Pearl reports 2021 income of $87,000 before depreciation on the plant and government assistance, what income before tax will the company report assuming (a) above? Assuming (b) above? (Round answers to 0 decimal places, e.g. 5,275.)