Question 10 (8 marks) Fontaine Corp. qualified for a 20% government cash grant that would assist the company in the purchase of machinery for its manufacturing operations. The cost of the machinery is $ 200,000 and the new asset has an estimated useful life of 10 years. The cash was received on January 1, 2020, and the machine was purchased on January 1, 2020. Required: (Do either (a) or (b), but not both. Also, complete (c) and (d). a) Assuming that Fontaine uses the cost reduction method, prepare the journal entries to record the purchase of the machinery and the receipt of the government grant. b) Assuming that Fontaine uses the deferral method, prepare the journal entries to record the purchase of the machinery, and the receipt of the grant. c) Complete all December 31, 2020 adjusting journal entries related to the machinery d) Discuss briefly the accounting theoretical arguments for not allowing the use of the method that you selected ( in either (a) or (b)). Question 10 (8 marks) Fontaine Corp. qualified for a 20% government cash grant that would assist the company in the purchase of machinery for its manufacturing operations. The cost of the machinery is $ 200,000 and the new asset has an estimated useful life of 10 years. The cash was received on January 1, 2020, and the machine was purchased on January 1, 2020. Required: (Do either (a) or (b), but not both. Also, complete (c) and (d). a) Assuming that Fontaine uses the cost reduction method, prepare the journal entries to record the purchase of the machinery and the receipt of the government grant. b) Assuming that Fontaine uses the deferral method, prepare the journal entries to record the purchase of the machinery, and the receipt of the grant. c) Complete all December 31, 2020 adjusting journal entries related to the machinery d) Discuss briefly the accounting theoretical arguments for not allowing the use of the method that you selected ( in either (a) or (b))