Wind and Solar Inc. (WSI) is in the business of providing electricity. The company started up in 2019. Currently, it is owned by Winifred Wind and Winston Chang. Both Winston and Winifred own 50% of the WSI common shares. Under the terms of the shareholder agreement, either party may buy the other out at a price of 10 times the current net income. This buyout clause becomes effective immediately. WI plans to go public within five years if all goes well.

During the year, the company obtained financing from the local bank and purchased land on which it has built large wind turbines (windmills) and solar panels. The company will be generating electrical energy through wind power and solar power. The loan was also used to finance the construction of the windmills and solar panels. Under the terms of the loan, the company must maintain a debt to equity ratio of 1:1.

During 2019, some of the windmills and solar panels were up and running and had started to gen- rate revenues. The company's largest customer was the local government, which had signed a contract with WI to purchase half of the output of electricity for 2019 and 2020. At a minimum, the government was locked in to pay $1 million.

The price per kilowatt hour was fixed upfront and the government had already paid half of the money in advance. The contract was non-cancellable, and even if WSI was unable to deliver the minimum amount of electricity, the government would still be committed to paying the full $1 million.

The government noted that it considered the $1 million as a type of grant to support the development of clean energy and was happy to pay the funds in order to support the clean energy movement.

Adopt the role of the company's auditors and discuss the financial reporting issues for the end of 2019.

The year 2019 has been finished and provide the issues regarding the financial statements and we have also taken the government half grant as 500,000 as revenue for 2019. please comment on this.