Question 1: Amman Co. Limited a manufacturer of light bulbs recently received a government grant of $300,000 to assist with the company cash flows pursuant to the purchase of a glass blower for $500,000 on 1/1/20X8. A condition placed on this grant required Amman Co.to produce 10,000 light bulbs for the new parliament buildings by 31/12/20X9. Failure to comply with part or this entire requirement would cause a proportionate amount of the grant to be repayable. . For the 20/8 financial yearAmman Co.produced and installed 6,000 light bulbs in the new parliament building. However due to frequent power cuts during 20X9 only 2,000 ofthe government light bulbs wereproduced and installed in 20X9. The useful life of the glass blower was 5 years Required: a) Prepare journal entries for the years ended 31 December 20X8 and 20X9, accounting forthe grant and the glass blower assuming Amman Co. has a policy of accounting for thegrant as deferred income. b) Prepare journal entries for the years ended 31 December 20X8 and 20X9, accounting forthe grant and the glass blower assuming Amman Co. has a policy of writing off the grantagainst the asset (deduction method)